California median home price remains strong

California median home price remains strong; buyers confront listings shortage
California’s median home price marked a full year of annual price gains, propelled by strong sales of higher-priced homes in February, while a lack of inventory constrained total home sales for the month, C.A.R. reported.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 416,610 units in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in February were down 0.9 percent from a revised 420,270 in January and down 5.9 percent from a revised 442,660 in February 2012.  The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the February pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home slipped 1 percent from January’s revised median price of $337,360 to $333,880 in February.  February’s price was up 24.2 percent from a revised $268,810 recorded in February 2012, marking a full year of annual price increases and the eighth consecutive month of double-digit annual gains.  The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

C.A.R. also released benchmark revisions to historic existing single-family home sales. With the new benchmark, the total number of existing single-family homes sold in 2012 was 440,690, a 16.1 percent downward revision from the 525,120 sales previously reported.

Rebenchmarking is an adjustment performed periodically on a series of data to ensure its continued accuracy.  It is necessary to revisit the benchmark regularly, as the underlying assumptions of the data series may change over a period of time.