Home Prices are Increasing

According to the California Association of REALTORS (CAR), home sales declined in March compared to February but the median price of homes in the state snapped a 16 month annual price decline.

The statewide median price of an existing, single-family detached home jumped 9.2 percent to $291,080 in March from February’s $266,660 median price and was up 1.6 percent from a revised $286,550 recorded in March 2011.  The month-to-month increase was the largest since March 2004.

In Sacramento the median price increased 2.7 percent to $168,379 from February but only .01 percent from last year.  Placer County fared better with a median price of $268,750, an increase of 6.9 percent from the month before and represented a 5.9 percent increase from last year.

Other key facts of C.A.R.’s March 2012 resale housing report include:

• California’s housing inventory declined in March, with the Unsold Inventory Index for existing, single-family detached homes decreasing to 4.1 months in March, down from a revised 5.4 months in February and down from the 5.4-month supply in March 2011.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A 7-month supply is considered normal.
• Interest rates edged up slightly in March.  Thirty-year fixed-mortgage interest rates averaged 3.95 percent during March 2012, down from 4.84 percent in March 2011, according to Freddie Mac.  Adjustable-mortgage interest rates averaged 2.77 percent in March 2012, compared with 3.22 percent in March 2011.
• The median number of days it took to sell a single-family home fell to 53.1 days in March 2012 and was down from a revised 57 days for the same period a year ago.

Julie Jalone

If you or someone you know is considering buying, please feel free to contact me MagnumOne Realty office in Roseville at (916) 899-6571 and email at [email protected].

We specialize serving the needs of buyers and sellers of homes in the Roseville and Sacramento area including Sacramento, Placer, El Dorado, Sutter and Yuba counties.