Markets Are Working: CA Home Sales Increase +83% in February As Home Prices Fall By -41%

LOS ANGELES (March 25) – Home sales increased 83% in February in California compared with the same period a year ago, while the median price of an existing home declined 40.8% percent, the CALIFORNIA ASSOCIATION OF REALTORS (CAR) reported today (see chart above).

Sales of existing, single-family homes in California totaled 620,410 in February at a seasonally adjusted annualized rate, according to information collected by CAR from more than 90 local REALTOR associations statewide. Statewide home resale activity increased 83% from the revised 338,970 sales pace recorded in February 2008.

The median price of an existing, single-family detached home in California during February 2009 was $247,590, a 40.8% decrease from the revised $418,260 median for February 2008, CAR reported. The February 2009 median price fell 2.3% compared with January’s revised $253,330 median price.

CAR’s Unsold Inventory Index for existing, single-family detached homes in February 2009 was 6.5 months, compared with 15.3 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.

The median number of days it took to sell a single-family home was 51.5 days in February 2009, compared with 69.3 days for the same period a year ago.

MP: Market forces and the Law of Demand are working in the California real estate market. Total real estate sales volume increased by 8.45% from $1.42 billion in February 2008 to $1.54 billion in February 2009, at an annualized rate.