LAKE COUNTY – After months of declining home sales, the numbers have started to look up this spring.

Home sales increased in the county 13.3 percent in April compared with the same period a year ago, while the median price of a home decreased 8.7 percent according to information gathered from the Lake County Multiple Listing Service.

Home sales increased by eight extra sales to 68, up from last April’s 60. In addition, April's sales increased by three homes – or 4.4 percent – over March, which had 65 sales.

“The sluggish home sales activity is a reaction to an uptick in mortgage rates earlier this year along with tighter underwriting standards,” said Phil Smoley, owner/broker CPS Country Air Properties. “Moreover, recent news regarding foreclosures and the subprime situation had an adverse impact on the market psychology of many buyers, leading some to delay their home-purchase decisions.”

Closed escrow sales of existing homes in Lake County totaled 68 in April according to the Multiple Listing Service. Statewide, home resale activity decreased 20.8 percent from the home sales pace in March 2006, in which 539,170 sales took place.

The median price of home in Lake County during April was $289,975, an 8.7-percent decrease from the $317,500 median for April 2006, the Multiple Listing Service reported. The April 2007 median price decreased 4.9 percent compared with March’s $305,000 median price.

“Home sales have been gradually increasing over the last few months, ever since the asking prices have come closer to reflecting the reality of the current market,” said Smoley.

“Currently the difference between listing prices and sale prices is 10.8 percent,” Smoley continued. “Overall, listing prices have to come down much further in order to stimulate the market. Homes that are priced right are still selling while others that are overpriced will continue to sit on the market month after month.”

Lake County’s Unsold Inventory Index for homes in April was 18.4 months, compared with 17.8 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 6.875 percent during April, compared with 7.125 percent in April 2006, according to Del Whitehead of Cal Bay Mortgage. Adjustable-mortgage interest rates averaged 5.029 percent with a 3.4 percent margin in April 2007 compared with 4.011 percent with a 2.8 percent margin in April 2006.

The median number of days it took to sell a home was 166 days in April, compared with 146 days for the same period a year ago.

 

Highlights of Lake County’s housing figures for April 2007:

(Information listed from left to right includes area, number of listings, median price, average number of days on the market, number of sales, median sold price and the days on market.)

Buckingham – 17; $667,500; 92; 2; $537,000; 166.

Clear Lake Riviera – 88; $317,947; 121; 5; $274,000; 271.

Cobb – 53; $339,000; 83; 4; $302,000; 142.

Hidden Valley – 195; $389,000; 116; 9; $335,000; 190.

Jago Bay – 2; $447,000; 92; 1; $233,000; 100.

Kelseyville – 32; $369,500; 99; 1; $349,000; 264.

Lakeport North – 88; $451,500; 129; 11; $289,900; 129.

Lakeport South – 27; $429,000; 111; 1; $350,000;176.

Middletown – 18; $549,750; 129; 1; $350,000; 21.

Riviera Heights – 26; $382,500; 120; 2; $500,500; 253.

Riviera West – 20; $434,250; 149; 1; $439,000; 184.

Soda Bay – 4; $462,450; 69; 0; 0; 0.

Ray Perry sells real estate in Lake County. Visit his Web site at http://RayPerry.com.

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