Jun 22, 2011

Not Much Relief for California Home Sales, Prices — Except San Francisco

According to a report in National mortgage news,

Home sales in the Golden State fell 6% in May from the prior month with the California Association of Realtors blaming tightened financing conditions and the weak economy for the decline.

According to figures compiled by the trade group, median home prices fell roughly 1% on a sequential basis to $291,790, but were down 11% compared to May 2010.

"Market demand has been sluggish as would-be home buyers remain concerned about the direction of the economy," said CAR president Beth Peerce. "They may also be weary of delays in the buying process and difficulty in getting a home loan."

The trade group chief also blamed a larger inventory of distressed properties sitting on the market for the sluggish sales pace and weak prices.

The San Francisco Bay area, however, bucked the trend, with values rising 4% between April and May. The areas with the biggest price gains include: Napa (up 23%), San Mateo (+13%), and Marin (+11%).

DataQuick of San Diego issued its own results for May sales in the Bay Area, finding that the median price paid for all new and resale properties (including condos) was $372,000, up 3% from April but down 9% from May 2010. It was the largest year-over-year drop in the median scale since August 2009, when it fell 20%.

"Given the sluggish start to this spring's home-buying season, with sales 20% to 30% below average, it's no surprise we're logging sharper declines from 2010," said DataQuick president John Walsh. "Sales got a big shot in the arm a year ago, when people rushed to take advantage of expiring homebuyer tax credits. Today the market must stand on its own, and it's having a hard time doing that in the absence of stronger job growth and consumer confidence."

Read more - http://www.nationalmortgagenews.com/dailybriefing/2010_369/california-home-sales-1025258-1.html?ET=nationalmortgage:e1402:92746a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_061611

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