Home/Mortgages/California Home Sales Decline in June, Prices Still Gaining

July 25, 2012 (Shirley Allen)

Monthly sales of new and existing homes in California unexpectedly fell in June but still remained higher than year ago levels, while home prices kept pushing upward according to real estate information provider DataQuick.

An estimated total of 41,027 new and existing homes and condos were sold in the Golden State in June. That was 1.8 percent lower than the 41,790 homes sold in May but still 5.3 percent higher than the 38,975 homes sold in June 2011.

Home sales in the state typically increase 6.7 percent between May and June. Despite being 17.5 percent below the historical average of 49,753 sales for the month, home sales have improved year-over-year for the last 12 months.

Distressed property sales accounted for 43.1 percent of all re-sales in June, down from 46.4 percent in May, with homes that had been foreclosed on in the previous twelve months accounting for 25.0 percent of the existing home sales. That was down from a revised 28.5 percent in May and down from 35.1 percent in June of 2011.

Foreclosure re-sales are less than half of what they were since the market peak in February 2009 when foreclosure re-sales accounted for 58.5 percent of the resale market.

Short sales accounted for an estimated 18.1 percent of all re-sales last month, up slightly from 17.9 percent in May. In June of last year, short sales accounted for 17.5 percent of all existing home sales.

The median sales price for a home in California increased 1.5 percent to $274,000 from $270,000 in May and was 8.4 percent higher than the median price of $253,000 posted in June of 2011. It was the fourth consecutive increase in year-over-year prices in the state following 18 months of declines.

The statewide current cycle peak price was $484,000 in early 2007, while the low during the current cycle was $221,000 in June 2009.

Tags: California, new and re-sale homes, condos, sales, median home prices, distressed properties, short sales, typical mortgage payment