A new report from the California Association of Realtors (C.A.R.) reveals that home sales in the state experienced a positive 18.1-percent increase in May when compared to the same period a year ago, but home price declines persisted with the median price of a home now 35.3-percent lower than it was in May of 2007.

“Home sales exceeded 400,000 last month for the first time since early 2007. While this is a welcome sign for the market, it was due in part to the large share of distressed homes for sale in many parts of the state,” said C.A.R. President William E. Brown. “Sales also rose above their year ago levels for the second month in a row after 30 consecutive months of year-to-year decreases. The lower prices associated with distressed sales along with favorable interest rates both contributed to higher sales levels.”
An existing single-family home in California likely sold for the median price of $384,840 in May of 2008, a dramatic drop when considering the same median existing single-family home sold for $594,530 in May of last year.
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