Foreclosures, Short Sales Boost Existing-Home Sales

Sales of existing homes picked up 2 percent from April to May to an annual rate of 4.99 million units as the median home price for all housing types fell 6.3 percent from a year ago to $208,600, the National Association of Realtors report..

"Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices." NAR Chief Economist Lawrence Yun said. In the West, the median home price was down 16 percent from a year ago, to $286,600. The median price slipped 2.4 percent in the Northeast, to $278,000; 4.3 percent in the South, to $175,000; and 0.7 percent in the Midwest, to $165,300.

While the rate of sales picked up nationwide from April to May, they were down 15.9 percent from a year ago, when homes were selling at an annual rate of 5.93 million units. Condos and co-op sales picked up 5.5 percent to a seasonally adjusted annual rate of 580,000 units, but were down 24.6 percent from a year ago. By region, existing-home sales were up 5.5 percent in the Midwest from April to May, 4.6 percent in the Northeast, and 2 percent in the West. Sales slipped 0.5 percent in the South.

More California homes sell in May, but at lower prices
A report released Wednesday by the California Association of Realtors showed that while home sales in the state rose in May from their year-ago level the median price of an existing home fell sharply.

The median price of an existing, single-family detached home in Orange County dropped 23.6 percent versus California as a whole which fell 35.3 percent between May 2007 and May 2008 -- from $635,000 to $485,000 in Orange County.

Sales of existing, single-family detached homes climbed to a seasonally adjusted annualized rate of 423,700, up 18.1 percent from the revised 358,640 sales pace recorded in May 2007. The sales figure represents what the total number of homes sold during 2008 would be if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

"Home sales exceeded 400,000 last month for the first time since early 2007," C.A.R. President William E. Brown said in a news release. "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."

Please let us know where you think Orange County prices are heading - if further down, by how much more.