CA Prices Soar, Sales Weaken
The CAR reports a new milestone in California. "The median price of a home in California topped a half-million dollars for the first time in April, reflecting the continuing demand for housing and the ongoing supply shortage."
About that supply issue. "An examination of 2003 data from the Census Bureau shows there are 43.8 million second homes in the United States, including 6.6 million vacation homes and 37.2 million investment units, compared with 72.1 million owner-occupied homes."
If you look at the reporting today, most stories lead off with some statistic like this, "Home Sales Up 4.5 Percent in April."
But where is this headline? "Statewide, the 10 cities and communities with the greatest median home price increases in April 2005 compared with the same period a year ago were: Reedley, 68.8 percent; Colton, 64.7 percent; Twentynine Palms, 63 percent; Atwater, 58.7 percent; Rohnert Park, 57.5 percent; Laguna Hills, 53.3 percent; Norco, 51.6 percent; La Canada-Flintridge, 50.9 percent; Adelanto, 49.1 percent; Victorville, 45.8 percent."
Don't miss the table at the bottom of the CAR site. Not one region showed a y.o.y. price decrease. But out of 20 regions, 13 had y.o.y. negative sales volume and 8 of those were double digit declines.