The California Association Of Realtors (C.A.R.) recently reported that last November's home sales increased by 4.7 percent throughout California compared to November of 2008, while the median price of existing homes rose 5.8 percent.
As many contracts were signed to purchase homes to take advantage of the federal tax credit before the original November 30th expiration, it was first-time home buyers that drove the market in November. Some economists feel that the extension and expansion of the federal tax credit until April 30, 2010 combined with low interest rates may continue to gain momentum in the coming months for first-time home buyers.
Federal assistance that helped homeowners who were at risk of foreclosure has led to fewer homes being available for sale and therefore has lead to an increase in the state's median home price as supply and demand has begun to level off.
Compared to the median home price for November 2008 which was $287,880, last November's median price of an existing, single-family detached home in California was $304,520 which was an increase of 5.8 percent. Furthermore, last November's median price rose 2.4% compared to October's price of $297,500.
Information collected by C.A.R. from almost 100 local Realtor associations statewide has shown that closed escrow sales of existing, single-family detached homes in California totaled 536,720 in November.