California 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.

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.

Comments

[Trane250:]

I don't have the exact figures, but a very high percentage of these sales in CA are foreclosures or "short" sales. Some entity has to eat the losses from this debacle and that entity is the US taxpayer and saver through the printing of money to buy up the toxic assets on the banks' and Fannie and Freddie's books or through making good on the asset default swaps sold by AIG. Regional bankruptcy is being traded for national bankruptcy.

Mar 26 08:50 AM

[Fred Voetsch:]

Very good news as long as these homes aren't being bought on speculation.

Certainly we have to be getting CLOSE to a bottom:

"The Average Home Price in Detroit Falls to $13,638"

seekingalpha.com/artic...

Mar 26 01:38 PM

[specks:]

Of course we're going to get an uptick. Just look at the amount of money being printed by B&B. That's Barrack and Ben for those of you from far off.

Mar 26 04:14 PM

[Angry Appra...:]

This is VERY POSITIVE NEWS people.
and yes, like it or not Investors are buying in droves......

Its the best positive CASH FLOW window I HAVE EVER SEEN.

Many investors are putting down sizeable down payments so the potential foreclosure risk isnt as high.

Listen to the doom and gloomers and you will MISS THE BOAT.

Let the new cycle begin.

Mar 26 10:02 PM

[sickofthehype:]

Angry Appraiser you're right. NONE of these new sales are subprime, none are option ARMs, and none are anything less than 10-20% down. THAT, is the key.

I've seen sales at $50/sq ft, and the cost value alone is double that figure sometimes, so these investors snapping up deals right now are not only cash-flowing, but they're setting themselves up for huge appreciation once inflation kicks in over the next couple of years..

Mar 27 10:46 AM