Market Conditions - June 28, 2006 by Carla L. Davis
The California Association of Realtors® reports that home sales in the state this year are down by 21.1 percent. But as in many areas of the nation, median home prices continue to rise. "The median price of a home continued to increase in May, but at a more sustainable 8 percent rate," said C.A.R. President Vince Malta. "This is the first time since November 2001 that the median price did not increase by double digits, reflecting the return to the more balanced market that we have anticipated." Buyers should expect median single family home price near $564,000 -- up only a half percent from April. Will this trend continue? An 8 percent rate of appreciation is predicted for the year. The priciest city in the state is the Laguna Beach area -- at $1,692,500 as the median. Consistent with reports from CAR, the area is currently a buyers market. Creating this market is increased interest rates, decreased affordability, fear of buying at the top of the market, and an increased inventory. Fewer buyers are venturing onto the market -- meaning homes are taking longer to sell. But the market is still healthy. Detached homes start at around $900,000. | 
