CA Real Estate Recovery: Home Sales Increase for 15th Straight Month, Median Prices for 7th Month
Closed escrow sales of existing, single-family detached homes in California totaled 530,520 in September 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 2.1% from the revised 519,530 sales pace recorded in September 2008 (see chart above). Sales in September 2009 increased 0.6% compared with the previous month.
The median price of an existing, single-family detached home in California during September 2009 was $296,090, a 7.3% decrease from the revised $319,310 median for September 2008, C.A.R. reported. The September 2009 median price rose 1.1 percent compared with August’s $292,960 median price.
“A new milestone was reached in September, when five C.A.R. regions reported positive year-to-year increases in the median price, the first such increase since January 2008,” said C.A.R. Vice President and Chief Economist Leslie-Appleton-Young. “September also marked the seventh consecutive month of month-to-month increases in the statewide median price and the first single-digit decline in the year-to-year median price since October 2007, after 22 consecutive months of double-digit decreases.
C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in September 2009 was 4.2 months, compared with 6.5 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.
MP: Now that year-over-year unit sales have increased for 15 consecutive months, median prices have increased for 7 straight months, and unsold inventory has dropped by more than two months over the last year, can we now declare that the California real estate market is in a full state of recovery? And if this isn't a full recovery, how would it be any different than the current conditions?