C.A.R. May report shows sales, median home price in California

jumps more than 20 percent in May 2002, compared to one year ago

Sales, median home price in California jump more than 20 percent

in May, C.A.R. reports

Sales of existing homes in California in May increased 22.7

percent and the median home price rose 25.5 percent compared to the

same period a year ago, according to the California Association of

Realtors and Real Estate Solutions, a real estate information

service.

“Fueled by a combination of strong demand for housing and low

inventory of homes for sale as we entered the peak home selling

season, sales and the median price of a home in California surged

last month,” said C.A.R. President Robert Bailey. “Time on the market

-- the median number of days it takes to list and sell a home -- was

at 24 days in May.”

Closed escrow sales of existing, single family detached homes in

California totaled 620,300 in May 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

increased 22.7 percent from the 505,590 sales pace recorded in May

2001. Resale activity posted a 3.5 percent decrease in May compared

to April.

The statewide sales figure represents what the total number of

homes sold during 2002 would be if sales maintained the May 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 May 2002 was $321,130, a 25.5 percent increase over

the $255,860 median for May 2001, C.A.R. reported. The May 2002

median price increased 1.3 percent compared to April 2002.

“The median price of a home jumped by double digits in 12 regions

throughout the state last month, while sales posted double-digit

gains in 13 regions,” said C.A.R. Vice President and Chief Economist

Leslie Appleton-Young. “While we don’t expect home sales to maintain

this frenetic pace, the state’s ongoing shortage of affordable homes

for sale will continue to exert upward pressure on the median price.”

Highlights of C.A.R.’s resale housing figures for May 2002:

C.A.R.’s Unsold Inventory Index for existing, single family

detached homes in May 2002 was 2.1 months, compared to 3.6 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 6.81 percent

during May 2002, down from 7.16 percent in May 2001, according to the

Federal Home Loan Mortgage Corp. Adjustable mortgage interest rates

averaged 4.79 percent in May 2002 compared to 5.88 percent in May

2001.

- The median number of days it took to sell a single family home

was 24 days in May 2002, compared to 25 days for the same period a

year ago.

Note: Regional sales data is not adjusted to account for seasonal

factors that can influence home sales. MLS median price and sales

data for condominiums is 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 Real

Estate Solutions’ MetroScan(R) service, 287 of 328 California cities

and communities showed an increase in their respective median home

prices from a year ago. Using the MetroScanompany database, median home

prices are generated from new and existing condominium and single

family closed escrow sales. These localized MetroScanompany statistics are

based on county records data rather than MLS information.

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 may be exaggerated due to compositional changes in

housing demand. The MetroScanompany tables listing median home prices in

California cities and counties are accessible through C.A.R. online

at https://www.car.org/

index.php?id=MzA5OTA.

Among the highlights of the May localized data collected by C.A.R.

and Real Estate Solutions:

- Statewide, the 10 cities and communities with the highest median

home prices in California during May 2002 were: Malibu, $995,000;

Pacific Palisades, $872,750; Beverly Hills, $863,750; Palos Verdes

Estates, $860,000; Manhattan Beach, $849,500; Mill Valley, $835,000;

San Marino, $811,500; Orinda, $779,000; Lafayette, $761,250; and

Coronado, $740,000.

- Statewide, the 10 cities and communities with the greatest

median home price increases in May 2002 compared to the same period a

year ago were: Culver City, 64.6 percent; Lake Forest, 47.1 percent;

Nevada City, 36.6 percent; Adelanto, 33.9 percent; Fillmore, 32.8

percent; Claremont, 32.0 percent; Placentia, 31.3 percent; Sierra

Madre, 31.2 percent; Moorpark, 31.0 percent; and La Verne, 30.8

percent.

The California Association of Realtors (https://www.car.org) is one

of the largest state trade organizations in the United States, with

more than 100,000 members dedicated to the advancement of

professionalism in real estate. C.A.R. is headquartered in Los

Angeles.