California home sales plunge

Per the Central Valley Business Times:

There were twice as many homes on the market unsold in October than a year ago, according to the California Association of Realtors, reflecting a 28.7 percent plunge in sales.

“While it appears that home sales have stabilized over the past three months, it’s too soon to say whether or not the market has bottomed out,” says Colleen Badagliacco, president of the Realtors’ association. “We do expect smaller year-over-year declines in home sales for the remainder of the year.”

“We’re seeing a seasonal decline in the median price characteristic of this time of year, although the overall trend is a slight year-over-year increase,” says Ms. Badagliacco. “Prices at the regional and county level have shown greater variability, with some areas posting year-to-year declines while others continue to register price gains compared with last year.”

“The unsold inventory of existing homes is at 7.2 months, twice last year’s inventory. Higher inventory levels are a key factor in the moderation of home price appreciation,” she says.

There were enough existing, single-family detached homes sitting waiting for buyers last month to equal a supply that would last 7.2 months before being sold out. That compares with 3.4 months (revised) for the same period a year ago.


http://www.centralvalleybusinesstimes.com/stories/001/?ID=3670