"Sales fell in part because of tighter credit standards and growing concerns about the impact of subprime loans on the market," said Phil Smoley, owner/broker of CPS Country Air Properties. "Throughout the county inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market."
Closed escrow sales of homes in Lake County totaled 69 in May according to the MLS compared to 73 reported a year ago. However, May's sales activity improved by just one sale over April 2007. Statewide home sale activity decreased 27.8 percent from the 516,960 sales pace recorded in April 2006.
The median price of a home in Lake County during May 2007 was $299,000, a 3.6 percent increase over $288,500 median for May 2006, the MLS reported. The May 2007 median price increased 3.1 percent compared with April's $299,000 median price.
"Although the median price of a home in Lake County continues to rise, this reflects the fall-off in sales in the lower-priced markets of the county where new home inventories and foreclosures are competing with the existing home market," said Smoley. "Fewer sales from these regions coupled with
modest gains in some of the stronger neighborhood markets are pushing the median price for the County up slightly."
Highlights of Lake County's housing figures for May 2007:
Lake County's Unsold Inventory Index in May 2007 was 19.3 months, compared with 17 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.
Thirty-year fixed-mortgage interest rates averaged 6.25 percent during May 2007, compared with 6.51 percent in May 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.57 percent in May 2007 compared with 5.62 percent in May 2006.
The median number of days it took to sell a single-family home was 160 days in May 2007, compared with 157 days for the same period a year ago.
For a full look at sales around the county, see below.
May Home Sales
Realtor Ray Perry is a member of the CPS/Country Air Kelseyville office. Visit his Web site at www.rayperry.com.
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