Industry Insights Uncategorized

April CAR Trends: Price Differences & the Mix of Home Sales

May 23, 2011

The April 2011 CAR Trends Report has been posted to the Research Data section on the Marketing Page of SAVI.
In it, CAR shows that after dipping slightly below the 500,000 benchmark in February, sales of existing single-family homes in California bounced back to 514,090 units in March, an increase of 3.1% on a month-to-month basis, and a gain of 1.5% from last March. The statewide median home price increased 5.4% to $286,010 from February, after declining for two consecutive months. On a year-to-year basis, however, the median price decreased for the fifth month in a row.
The drop in the statewide median price was primarily due to the price decline in non-distressed home sales as their median price decreased from $409,800 in March 2010 to $386,500 in March 2011. Meanwhile, the median price of bank-owned sales (REO) increased slightly, and the median price of short sales remained virtually unchanged.
The substantial price differentials at the state level, however, are exaggerated in part by the difference in the mix of sales between distressed sales and non-distressed sales. Areas with high concentration of distressed properties in their market contribute a bigger proportion of sales in the REO and the short sales markets than they do in the non-distressed sales market. High-cost areas with fewer distressed properties, on the other hand, make up a larger share in the non-distressed sales market. With different mixes of sales between distressed sales and non-distressed sales, the differentials in median prices across short sales, REOs, and conventional sales reflect not only variances in the condition of the properties, but also their geographic differences as well.
To access the full report, click here.

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