California's Home Sales Rise 18%

"Home sales increased 18.1 percent in May in California compared with the same period a year ago, while the median price of an existing home fell 35.3 percent, the California Association of Realtors reported recently.

"€œHome sales exceeded 400,000 last month for the first time since early 2007,"€ said C.A.R. President William E. Brown. â€"While this is a welcome sign for the market, it was due in part to the large share of distressed homes for sale in many parts of the state."€

Sales also rose above their year ago levels for the second month in a row after 30 consecutive months of year-to-year decreases.

The lower prices associated with distressed sales along with favorable interest rates contributed to higher sales activity.

Closed escrow sales of existing, single-family detached homes in California totaled 423,700 in May at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local Realtor associations statewide.

Statewide home resale activity increased 18.1 percent from the revised 358,640 sales pace recorded in May 2007.

The median price of an existing, single-family detached home in California during May 2008 was $384,840, a 35.3 percent decrease from the revised $594,530 median for May 2007, C.A.R. reported.

The May 2008 median price fell 4.7 percent compared with April’s $403,870 median price.