New home sales fell 12.4 percent in July to a record low 276,000 unit annual rate.
As with existing home sales , all areas of the country felt the decline. Supplies are up to 9.1 months from June's 8.0 months.
New home prices are showing signs of weakness as the median price is down 6.0 percent to $204,000 for a - 4.8 percent year-on-year comparison. The median price is the lowest since 2003.
As I mentioned in yesterday's existing home sales report, the carnage was felt across the country and it will be some time before we see a more normalized real estate market.
The California Association of Realtors (C.A.R. ) reported Tuesday that the median home price of existing, single-family homes in California rose 10.4 percent in July compared with the year prior and home sales declined 20.8 percent.
What's interesting and somewhat surprising is that the year-over-year statewide median home price posted its ninth consecutive gain and seventh consecutive double-digit gain in July. The median price of an existing, single-family detached home in California during July 2010 was $314,850, up 0.9 percent compared with June's $311,950 median price.
There are buyers out there, but they are cautious and are not willing to buy a property just for the sake of becoming homeowners. As important as finding the right property is, many buyers today want value for their money and are looking very closely at the numbers-pending home sales, current active listings and recent closed escrows-in order to make informed decisions.
Lending has been somewhat tight lately, so if lenders decide to open the lending gates in the next few months that will have a strong impact on the current rising inventories.
California real estate facts:
- Calif. median home price: July 2010: $314,850 (Source: C.A.R.)
- Calif. highest median home price by C.A.R. region July 2010: Santa Barbara So. Coast $871,250 (Source: C.A.R.)
- Calif. lowest median home price by C.A.R. region July 2010: High Desert $128,950 (Source: C.A.R.)
- Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
- Mortgage rates: Week ending 8/19/2010 30-yr. fixed: 4.42 Fees/points: 0.7% 15-yr. fixed: 3.90% Fees/points: 0.6% 1-yr. adjustable: 3.53% Fees/points: 0.7% (Source: Freddie Mac)
Ana: It is just so awful that so many news outlets choose to play up all this negativity. And... this is played in the national media as IF it is rampant throughout the entire country, which it is NOT.
I just saw a post that talked about all this negativity... about three hours ago. There are areas of the country where sales are doing very well, and areas when home prices are NOT dropping, but actually increasing. Yes... the national media keeps up plastering this negativity... day in and day out.