Home sales decreased 25,7 percent in June in Lake County compared with the same period a year ago, while the median price of a home decreased 20.4 percent, according to information gathered from the Lake County Multiple Listing Service (MLS).

“Concerns about subprime lending will be with us well into next year, but improving economic conditions should bolster consumer confidence in the economy as we move through the second half of this year,” said California Association of Realtors (C.A.R.) President Colleen Badagliacco. “However, with prices holding steady or showing marginal declines in many parts of the state, affordability will continue to be a problem even with mortgage rates that remain near historic lows. In a competitive market with a wide range of properties for sale compared with a year ago, those homes that are in top shape and are well priced are in the best position to attract buyers in today’s market.”

Closed escrow sales of homes in Lake County totaled 75 in June, according to the MLS. Countywide home resale activity decreased 25.7 percent from the 101 sales pace recorded in June 2006.

The median price of a home in Lake County during June 2007 was $269,000, a 20.4 percent decrease over the $338,000 median for June 2006 the MLS reported. The June 2007 median price decreased 10 percent compared with May’s $299,000 median price.

When viewed by the quarter the median price of a home in Lake County actually increased 3.7 percent to $280,000 in the second quarter over the first quarters $270,000 however it has decreased 11.4 percent from the same period last year.

“The long expected spring rally just didn’t happen this year,” said Phil Smoley, owner broker of CPS Country Air Properties. “However homes that are priced to reflect the market trend are the ones that are selling,” he concluded.

“The decline in sales continues to be driven by both tighter underwriting standards since the start of the year and the adverse psychological impact of news regarding foreclosures and the subprime situation,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “In particular, the lower end of the market – which is the part of the market that is most affected by the subprime situation – has seen greater declines in sales and weaker prices than the higher end of the market. This will likely be a recurring theme in the coming months.”

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

 

• Lake County’s Unsold Inventory Index for homes in June 2007 was 18.6 months, compared with 13.4 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 6.67 percent during June 2007, compared with 6.6 percent in June 2006, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.65 percent in June 2007 compared with 5.63 percent in June 2006.
• The median number of days it took to sell a single-family home was 139 days in June 2007, compared with 135 days for the same period a year ago.

If you are interested in selling your home and would like a market analysis, call Ray Perry at 707-277-9255 Ext 101