California Home Sales Fall Again

The median home price in Los Angeles County fell nearly 4 percent in March compared to February to $571,110, according to statistics from the California Association of Realtors. Versus the year ago period, home prices in L.A. County rose 2.6 percent, a smaller rate of increase than occurred statewide, where prices inched up 3.2 percent compared to March, 2006. Sales volume in L.A. County, however, was more stable than it was statewide with single family home sales declining by just 4.6 percent, compared to a 20.8 percent drop in sales across California. C.A.R. officials attributed at least some of the decline in sales statewide to the recent headlines concerning foreclosures and the troubles in the subprime lending market. Across California, some 427,110 homes closed escrow in March, down from 539,170 homes in March, 2006. The median price of a single family home in the state rose to $580,090, compared to $562, 130 in March, 2007. But C.A.R. officials cautioned that the sheer number of homes on the market is likely to negatively affect home prices going forward. “For the first time since October 2006 time on the market fell below 60 days, as we enter the prime home-selling season,” said Leslie Appleton-Young, vice president at C.A.R. “On the other hand, the inventory of homes for sale continued to increase, a sign of price softness in the coming months, as expected.”