While the sales volume continues to decline, the median price in this state remains strong. July's median price for single family homes (excluding condominiums) is even a little higher than this time last year, according to the California Association of Realtors.
Partially responsible for this decrease in sales are the tighter lending guidelines--for buyers looking for 100% loans, they are much tougher to find. For all buyers, higher FICO scores are demanded, and some loan programs have disappeared all together. These changes affect the entry level buyers the most, as even a 95% loan-to-value program may be difficult to find.
110 out of 371 communities/cities in this state showed an increase in their median price compared to one year ago. Click on the title link of this article and see the 10 highest priced communities in the state, and the 10 with the greatest increase.
Condos have increased overall to a median price of $434,640, a 2.4% over one year ago.
Real estate is local, so median prices don't reflect changes up or down in other communities on a month-to-month basis.
Important to keep in mind: “It is important to note that decline in sales is not driven by weakening economic conditions ... Rather, the statewide and national economies continue to move forward, with no recession on the horizon at this point in time."
2 comments:
Hi Julia
Thanks for the recent visit on MyBlogLog - everyone on the UK is keeping a close look on the US real estate market at present as an economic marker, so I find your blog invaluable!
Anyway, I was recently tagged (twice!) on a meme called ‘8 random facts’. Naturally, I thought of you. I appreciate that memes come along pretty frequently these days, so I won’t take it amiss if you decide not to respond. If you do, here’s the original post with the rules and the 8 (not very) interesting random facts on me,: http://donaldhtaylor.wordpress.com/2007/08/24/8-random-facts-meme/
All the best,
Don
I'm glad you made it a point to say that it's entry level buyers and others with similar 'strength' issues that are mostly affected by the recently tightening in the lending world.
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