According to the California Association of Realtors the California median home price rose 21% but sales of existing homes dropped by 8%.
The median price in April 2010 was $306,230 up from $253,110 the year before and up 1.5% over March 2010’s median of $301,790.
The annual sale of homes was down below the 500,000 mark for the first time in 19 months, primarily due to buyers delaying closing of escrow to take advantage of both the federal and state home buyers tax credit. May should be a much stronger month as these escrows close.
Also, there is a demand for good foreclosed properties with a low inventory of same. And with mortgage rates so low, buyers are out there looking. When something good comes on the market the competition is huge.
Even though sales may level off after the tax credits are gone, it is anticipated prices should stabilize or increase due to the lack of inventory and large demand.