California’s Home Sales Net Mixed Reviews in September

In California, home sales were down during September, but data from the month still represents upward movement year-over-year for the third consecutive month. The recent findings from the ""California Association of Realtors"":www.car.org/ puts the state at what the organization calls a ""stable level.""

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Closings for escrow sales of existing, single-family detached homes in California transitioned downward to a seasonally adjusted total of 487,940 for September, representing a loss of 2.1 percent from August. Compared to the same month during 2010, the sales figure demonstrated a rise of 4.1 percent, up from unit closings of 468,700 for the same period one year prior.

Statewide median pricing for existing, single-family detached home sales stood at $287,440 for September, showing a decline of 3.2 percent compared to August numbers. More importantly, the current median price statistics represent an 8.3 percent drop year-over-year, based on last September's recordings which found the sector's median pricing at $313,460.

The state's Unsold Inventory Index for existing, single-family detached homes was even with August's findings, clocking in at

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5.1 months, demonstrating some downward motion year-over-year, based on a September 2010 total of 5.9 months. Thirty-year fixed-rate mortgages carried an average interest rate of 4.11 percent for September, off of 4.35 percent last year during the same month. Adjustable-mortgage interest rates stood at an average of 2.84 percent, dropping from 3.46 percent one year prior.

Single-family homes in California stayed on the market for an average of 54.4 days for September, rising from 50.3 days year-over-year. Addressing the state's recent results, CAR's president Beth L. Peerce said, ""September's sales decline was not a surprise, given the run of economic events that occurred during the time these sales were initiated, such as the debt debate, weakened stock market, and pending changes to the conforming loan limit. This heightened uncertainty, coupled with the lower conforming loan limit, which some large lenders began implementing in early July, had an adverse impact on September sales.""

Continuing commentary from the organization, Leslie Appleton-Young, CAR's VP and chief economist, noted, ""While the median price declined in September, we've seen nominal month-to-month changes in the statewide median price since February, indicating some stability in home prices. Additionally, September home sales remained on track with expectations for this year, and sales for all of 2011 should be about even with last year, slightly above 490,000 units.""

To evaluate the ""statewide market"":http://www.car.org/newsstand/newsreleases/2011newsreleases/septembersalesandprice/, CAR examined more than 90 local associations of realtors throughout California to determine statistics for existing single-family detached homes. Data recorded is typically seasonally adjusted, with the exception of county sales numbers, and the group notes that, in some areas, statistics for median pricing will appear more volatile that is accurate due to low sales volume in June of this year.