Home Sales Down in May

Home sales in California declined 25 percent in May compared with the same period a year ago, according to a report just released by California Association of Realtors, although the decline was smaller in the Los Angeles County area. In L.A. County, home sales declined 16 percent versus the year-ago period, and the median price rose 2 percent to $580,040 compared to the prior year. Median home prices across the state increased 4.8 percent in May compared with the year ago period, C.A.R. reported. “Concerns about subprime lending will be with us well into next year, but improving economic conditions should bolster consumer confidence in the economy as we move through the second half of the year,” said C.A.R. President Colleen Badagliacco. The organization attributed the sales decline to tighter underwriting standards since the start of the year and the impact of foreclosure news on consumers’ confidence.