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Closed escrow sales of existing, single-family detached homes in California totaled 490,850 in August.  Statewide home resale activity increased 56.7 percent from the revised 313,310 sales pace recorded in August 2007.

The median price of an existing, single-family detached home in California during August 2008 was $350,140, a 40.5 percent decrease from the revised $588,670 median for August 2007, C.A.R. reported.

“Although the month-to-month decline in the median price was the smallest in a year, it’s still premature to say that the median price has begun to stabilize,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “While sales appear to have turned the corner, the median will experience additional downward pressure as we move into the off-peak season in the coming months, and will continue to face pressure from distressed sales," she said.

C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in August 2008 was 6.7 months, compared with 10.6 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

The median number of days it took to sell a single-family home was 47.3 days in August 2008, compared with 54.7 days (revised) for the same period a year ago.

Home prices throughout most areas of California will post declines next year, while sales of existing homes will continue to rise in 2009, according to C.A.R.'s "2009 California Housing Market Forecast," released today during CALIFORNIA REALTOR® EXPO 2008.

"The current uncertainty about the financial system and economy is likely to persist over the next several weeks, and could extend into next year," said C.A.R. President William E. Brown. "Our forecast assumes that the financial system will begin to show signs of stabilization late in 2008 and into early 2009."

The median home price in California will decline 6 percent to $358,000 in 2009 compared with a projected median of $381,000 this year, according to the forecast. Sales for 2009 are projected to increase 12.5 percent to 445,000 units, compared with 395,600 units (projected) in 2008.

"Sales in 2008 will be ahead of last year by 12 percent, with a further increase of 12.5 percent expected in 2009," said C.A.R. Chief Economist Leslie Appleton-Young. "However, the next couple of quarters in late 2008 and early 2009 will be marked by seasonal decreases in activity, with a pickup expected by the second quarter of next year."