October 31, 2006 > California's unsold home inventory jumps

Silicon Valley/San Jose Business Journal, Oct. 25_ The California Association of Realtors (CAR) reported that the unsold inventory index for existing, single-family detached homes in September was 7 months, more than double the 3.2 months for the same period a year ago and slightly above the 6.8 months in August. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Meanwhile, CAR's report said home sales decreased 31.7 percent in September in California compared with the same period a year ago, while the median price of an existing home increased 1.8 percent, the California Association of Realtors reported Wednesday.

"We expected a fairly steep decline in sales last month compared with a year ago, when sales were near their all-time record," said CAR President Vince Malta. "Unsold inventory is holding steady, and is close to the long-term historic average typical of a more 'normal' market."

Closed escrow sales of existing, single-family detached homes in California totaled 444,780 in September at a seasonally adjusted annualized rate, according to the report. Statewide home resale activity decreased 31.7 percent from the 650,780 sales pace recorded in September 2005.

The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during September 2006 was $553,050, a 1.8 percent increase over the revised $543,510 median for September 2005. The September 2006 median price decreased 4 percent compared with August's $576,360 median price.

Statewide, the 10 cities and communities with the highest median home prices in California during September 2006 were: Los Altos, $1.5 million; Manhattan Beach, $1.4 million; Newport Beach, $1.3 million; Burlingame, $1.3 million; Los Gatos, $1.2 million; Rancho Palos Verdes, $1.1 million; Danville, $1 million; Cupertino, $968,750; San Clemente, $940,000; Santa Barbara, $917,500.