“Sales continue to be impacted by problems in the real estate finance sector, which by some measures have eroded since the start of the year,” said California Association of Realtors President William E. Brown. “Sales in 2007 reached their peak last February; going forward, the year-to-year declines in sales should shrink.”
Closed escrow sales of homes in Lake County totaled 60 in April, up 71.4 percent over March’s 35 sales according to information collected from the MLS.
“This is the largest month to month increase in sales that we’ve seen in years,” said Phil Smoley, broker/owner of CPS Country Air Properties. “This may be the beginning of a positive turn in the market. Many agents are seeing an increase in activity as bargain hunters are cashing in on the current market.”
The median price of a home in Lake County during April was $202,450, a 30.2-percent decrease from the revised $281,975 median for April 2007, the MLS reported. The April median price fell 5.8 percent compared with March’s $215,000 median price.
“Both tighter underwriting standards and the ongoing effects of the credit/liquidity crunch continue to constrain sales,” said California Association of Realtors Vice President and Chief Economist Leslie Appleton-Young. “Historically, mortgage rates on jumbo loans are 0.2 percent to 0.4 percent higher than those on conforming loans, but the spreads in recent weeks have been as large as 2 percentage points, reflecting an increase in the perceived risk associated with these loans.
“The lack of available funds for loans, even for qualified buyers, continues to keep the demand side of the market thin, and enables buyers with financing (or all cash) to exert leverage over sellers,” she said.
Highlights of Lake County’s housing figures for April:
Lake County’s Unsold Inventory Index for homes in April 2008 was 19 months, compared with 18.4 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 6.03 percent during April 2008, compared with 6.16 percent in March 2007, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.29 percent in April 2008, compared with 5.44 percent in April 2007.
The median number of days it took to sell a single-family home was 129 days in March 2008, compared with 139 for the same period a year ago.
For more information contact Ray Perry 707-277-8000 ext 101 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
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