San Fernando Valley Real Estate Blog

April California Market Conditions

"March sales fell below the levels of recent months in reaction to an uptick in mortgage rates earlier this year along with tighter underwriting standards. The year-to-year decline in March was larger than in recent months in part because sales in March 2006 were the strongest in all of last year," said C.A.R. President Colleen Badagliacco. " Moreover, recent news regarding foreclosures and the subprime situation had an adverse impact on the market psychology of many buyers, leading some to delay their home-purchase decisions."

Closed escrow sales of existing, single-family detached homes in California totaled 427,110 in March at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR^® associations statewide. Statewide home resale activity decreased 20.8 percent from the 539,170 sales pace recorded in March 2006.

Home sales decreased 20.8 percent in March in California compared with the same period a year ago, while the median price of an existing home increased 3.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported.

The statewide sales figure represents what the total number of homes sold during 2007 would be if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

 "For the first time since October 2006, time on the market fell below 60 days, as we enter the prime home-selling season," said C.A.R. Vice President Leslie Appleton-Young. "On the other hand, the inventory of homes for sale continued to increase, a sign of price softness in the coming months, as expected."

C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in March 2007 was 8.7 months, compared with 4.7 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. Thirty-year fixed-mortgage interest rates averaged 6.16 percent during March 2007, compared with 6.32 percent in March 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.44 percent in March 2007 compared with 5.42 percent in March 2006.

The median number of days it took to sell a single-family home was 56.2 days in March 2007, compared with 44.5 days (revised) for the same period a year ago.

The median price of an existing, single-family detached home in California during March 2007 was $580,090, a 3.2 percent increase over the revised $562,130 median for March 2006, C.A.R. reported. The March 2007 median price increased 3.9 percent compared with February's revised $558,130 median price.