Home Sales Down in California

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(Sacramento, CA)
Monday, September 25, 2006

The California Association of Realtors reports home sales in the state decreased by 30.1 percent last month compared with the same period a year ago.  The Association’s Deputy Chief Economist Robert Kleinhenz says the continued rise of home prices and the incremental hike in interest rates are just a few of the contributing factors. 

“There’s been a growing sense of uncertainty, about the market about the direction of interest rates, about the general state of the economy and I think that’s led to a slowdown as well.” 

Right now, the median price of a home in California is just shy of $577,000—a 1.6 percent increase from August of last year.  However Association economists say that median price typically peaks between June and August before declining toward the end of the year.