Home sales in California decreased 22.7-percent last month and the median price of an existing home fluctuated 3.2-percent, according to a press release from the California Association of Realtors (CAR).
CAR President Colleen Badagliacco attributes the decline in sales to tighter underwriting standards and the adverse psychological impact of news and information about the subprime market and increased foreclosure rates.

“Although the median price posted an increase statewide, there is a disparity between the lower-priced or entry-level markets where prices are generally soft at best and sales have declined sharply, and some higher priced markets that continue to experience price appreciation along with somewhat smaller decreases in sales,” Badagliacco said.
According to data collected by CAR, closed escrow sales of existing, detached homes totaled 350,980 last month. Statewide home resale activity decreased 22.7-percent from 453,980 recorded last year. In addition, the median price of an existing, detached home this year was $586,030, a 3.2-percent increase over the revised $567,860 median last year. This year, the median price decreased 1.4-percent in comparison with last year’s revised $594,280 median.
“It’s important to note that decline in sales isn’t driven by weakening economic conditions,” Badagliacco said. “The statewide and national economies continue to move forward, with no recession on the horizon at this point in time.”
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