CA HOUSING PRICES STILL GOING UP

But Increases Are Not At the Heated Pace Seen In Recent Years

View of California's most expense real estate - the Santa Barbara Pier and Coastline

Affordability continues to present a challenge for buyers (and REALTORS®) in California.  Recent statistics provided by the California Association of REALTORS® bear this out.  In spite of the increasing in prices paid for homes sellers (and REALTORS®) are feeling a slowdown in sales due to the more than doubling of homes on the market year over year in most areas of the state. 

While this should bode well for buyers they appear to be holding back despite the fact interest rates are extremely favorable the choice of homes is so much greater.  Makes me think that too much choice may simply make it too difficult for some buyers to decide to act.  When the supply was limited buyers were gobbling up homes like relatives fighting for the last piece of pie at Thanksgiving dinner.  But that is not the case today.

The CAR survey  determined the median home price in California during September 2006 rose to $553,050.  The median is the point at which half of the homes sold for more than a specific amount and the remaining half sold for less than the amount.

The highest median home price during the same period was found in Santa Barbara County's South Coast where the median home was selling for $1,025,000.  The High Desert region was once again the lowest median home price in the statewide survey.  In that area the median price increased to $329,040 from $321,500 in January 2006.