For release:
Friday, April 25, 2008

C.A.R. reports sales decreased 24.5 percent, median home price fell 29 percent in March

LOS ANGELES (April 25) - Home sales decreased 24.5 percent in March in California compared with the same period a year ago, while the median price of an existing home fell 29 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

"Sales continue to be impacted by problems in the real estate finance sector, which by some measures have eroded since the start of the year," said C.A.R. President William E. Brown. "Sales in 2007 reached their peak last February; going forward, the year-to-year declines in sales should shrink."

Closed escrow sales of existing, single-family detached homes in California totaled 318,830 in March at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 24.5 percent from the revised 422,300 sales pace recorded in March 2007.

The statewide sales figure represents what the total number of homes sold during 2008 would be if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during March 2008 was $413,980, a 29 percent decrease from the revised $582,930 median for March 2007, C.A.R. reported. The March 2008 median price fell 1.3 percent compared with February's revised $419,640 median price.

"Both tighter underwriting standards and the ongoing effects of the credit/liquidity crunch continue to constrain sales," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Historically, mortgage rates on jumbo loans are 0.2 percent  to 0.4 percent higher than those on conforming loans, but the spreads in recent weeks have been as large as 2 percentage points, reflecting an increase in the perceived risk associated with these loans.

"The lack of available funds for loans, even for qualified buyers, continues to keep the demand side of the market thin, and enables buyers with financing (or all cash) to exert leverage over sellers," she said.

Highlights of C.A.R.'s resale housing figures for March 2008:

• C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in March 2008 was 11.6 months, compared with 7.6 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
  
• ·  Thirty-year fixed-mortgage interest rates averaged 5.97 percent during March 2008, compared with 6.16 percent in March 2007, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.12 percent in March 2008, compared with 5.44 percent in March 2007.
• · The median number of days it took to sell a single-family home was 56.7 days in March 2008, compared with 52.9 for the same period a year ago.

Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS® throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 4.9 percent, or 14 out of 283 cities and communities, showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)

Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for March may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online, here. 

• Statewide, the 10 cities and communities with the highest median home prices in California during March 2008 were: Newport Beach, $1,198,500; Danville, $990,000; Santa Barbara, $977,500; Redwood City, $872,500; Mountain View, $862,000; San Clemente, $842,000; Sunnyvale, $806,500; San Ramon, $790,000; Redondo Beach, $774,000; San Francisco, $755,000.
• Statewide, the cities and communities with the greatest median home price increases in March 2008 compared with the same period a year ago were: Mountain View, 25.8 percent; Sunnyvale, 15.2 percent; Redwood City 12.9 percent; Yorba Linda, 10.4 percent; San Ramon, 7.6 percent; Ridgecrest, 7.6 percent; Claremont, 6.7 percent; West Hollywood, 3.6 percent; Laguna Niguel, 3.3 percent; San Francisco, 0.7 percent.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.