Bubble Update: California homes for sale index continues to swell

[Human Torch]

California homes for sale index continues to swell
Silicon Valley/San Jose Business Journal - 2:21 PM PDT Tuesday

http://www.bizjournals.com/sanjose/stories/2006/06/26/daily30.html?f=et79&hbx=e_du

A report said Tuesday that May's unsold inventory index, which measures how many months it would take to sell the inventory of existing single-family homes in California, was more than double the same period a year ago. The California Association of Realtors said the index for existing, single-family detached homes was 5.9 months, compared with 2.7 months for May 2005. The index is up from 5.6 months in April

The median number of days it took to sell a single-family home was 44 days in May 2006, compared with 42 days in April and 27 days for the last May. In addition, the median price of an existing home in the state increased 8 percent in May while sales decreased 21.1 percent compared with the same period a year ago, the group reported.

"The median price of a home continued to increase in May, but at a more sustainable 8 percent rate," said C.A.R. President Vince Malta. "This is the first time since November 2001 that the median price did not increase by double digits, reflecting the return to the more balanced market that we have anticipated. Interest rates, while still historically low, continue to impact sales as did the inventory of homes for sale, which reached nearly a six-month supply in May."

Statewide, the 10 places with the highest median home prices in California during May 2006 were Laguna Beach, $1,692,500; Saratoga, $1,500,000; Burlingame, $1,371,000; Newport Beach, $1,336,000; Manhattan Beach, $1,241,500; Los Gatos, $1,180,000; Santa Monica, $1,162,500; Rancho Palos Verdes, $1,144,000; Lafayette, $1,142,500; Calabasas, $1,130,000; and Santa Barbara, $1,130,000.

[I_Make_Mistakes]

1. Yes and last night NJn stated that homes that were contracted

but not settled on (meaning the purchase was abandoned) are not returned to the inventory figure (which means inventory is even higher than the numbers insinuate).

This means that the fake new homes number is severely inflated and things are going south quickly. This is not good new for me, I was hoping to sell in 6 months.