The California Association of Realtors (C.A.R.) says home sales decreased 27.8-percent in April due to uncertainty in the market and the affects of tighter lending standards on mortgage loans.

“April sales fell in part because of tighter lending standards and growing concerns about the impact of subprime loans on the market,” said C.A.R. President Colleen Badagliacco. “Throughout the state inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market.”
The association in it’s latest report, which was collected from more than 90 Realtor associations statewide said, “Closed escrow sales of existing, single-family detached homes in California totaled 373,280 in April at a seasonally-adjusted annualized rate. Statewide home resale activity decreased 27.8-percent from the 516,960 sale pace recorded in April 2006.”
Meanwhile, as the number of home sales were dropping in April, California homeowners experienced a minor increase in home prices. C.A.R. says the median price of existing homes in April etched up 6.2-percent over last year, reaching $597,640.
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