CALIFORNIA RETURNING TO MORE BALANCED MARKET

CALIFORNIA RETURNING TO MORE BALANCED MARKET, C.A.R. REPORTS

The median price of an existing, single-family detached home in California during December 2005 was $548,430, a 15.6 percent increase over the $474,270 median for December 2004, C.A.R. reported today. The December 2005 median price was nearly unchanged from November's $548,680 median price.

Closed escrow sales of existing, single-family detached homes in California totaled 531,910 in December at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 17.6 percent from the 645,860 sales pace recorded in December 2004.

"We are experiencing a return to a more balanced market, in line with our expectations, although unsold inventory is still near historical lows, with a 3.6 month supply of homes for sale," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Time on the market also is nearly unchanged at 44 days in December compared with 40 days for the same period last year."