Home sales in California jumped 18percent in May compared with a year earlier, while the median price plummeted a record 35percent as a wave of foreclosures continued to roil the real-estate market, a report released Wednesday said.
The California Association of Realtors reported that 423,700 existing homes closed escrow in May, compared with 358,640 recorded a year earlier. Last month's total was the first time since early 2007 that resales topped 400,000.
"While this is a welcome sign for the market, it was due in part to the large share of distressed homes for sale in many parts of the state," said William E. Brown, president of the statewide association. "Sales also rose above their year-ago levels for the second month in a row after 30 consecutive months of year-to-year decreases. The lower prices associated with distressed sales along with favorable interest rates both contributed to higher sales levels."
At the same time, the median price of an existing single-family home plunged to $384,840, a whopping 35.3percent below the median price of $594,530 for May 2007, the trade group reported. Last month's median price was nearly 5percent below April's median of $403,870.
Condominium prices took a similar hit, dropping from $446,070 in May 2007 to $357,970 last month, according to the statewide report.
The 35 percent drop in single-family home prices was a record for year-to-year comparisons and reflects the effect of large
