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California Real Estate Down During May

May housing numbers are in for the state of California and both the pace of home sales and median pricing are down. The survey, conducted by the ""California Association of Realtors"":http://www.car.org/(CAR), credits the still-struggling economy and stringent lending standards for the decline.
Month-over-month, home sales were down 5.8 percent, and on a year-over-year basis, May data demonstrated a sales pace decrease of 14.4 percent. The total number of closing escrow sales of existing, single-family homes was 471,840 during the month.
Of the slumping home sales, CAR's president Beth L. Peerce said, ""Market demand has been sluggish as would-be home buyers remain concerned about the direction of the economy. They may also be weary of delays in the buying process and difficulty in getting a home loan. This, combined with lenders putting distressed properties on the market at a more deliberate pace, is contributing to homes sitting on the market longer.""
Median home pricing in California dropped by a modest 0.7 percent month-over-month during May, but the year-over-year decrease was a more significant 10.9 percent. The current median price of a home in California is $291,460, off of $293,800 in April and $327,460 during May 2010.
Other notable statistics from CAR's poll included a stagnant inventory index month-over-month and a rise in the average number of days a home stayed on the market, which increased to 51.8 days during May, up from 37.8 days one year prior. Mortgage rates remain low and are down year-over-year in California; May rates averaged 4.64 percent.
Results of CAR's survey are calculated using 90 realtor associations throughout the state and are calculated using seasonally adjusted annual rates.

About Author: Abby Gregory


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