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The news just keeps getting better for the California housing market, especially for Sellers. The LA Times reports on data that indicates a 5-year increase in sales prices.
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California home prices climbed to a five-year high last month and sales increased as well, placing increased momentum behind the state’s housing recovery.
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The median sales price for a home rose 25.9% from last year to hit $340,000 in May, real estate firm DataQuick said Thursday. Sales of new and existing homes jumped 1.2% to 42,293, the most for a May since 2006 when 54,099 homes sold.
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But while sales increased last month to a multi-year high, they remained 9% below average as tight inventory continued to define the market, DataQuick reported.
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The lack of homes for sale, low-interest rates, investor demand, and an improving economy have caused sharp price increases recently. The median price paid for a home in Southern California rose 24.7% in May from last year, while the Bay Area jumped 29.8%.
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The median sale price is the point at which half of the homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general rise or fall in values.
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Helping the median rise is the declining percentage of distressed sales. Notices of default — the first formal step in the state’s foreclosure process — fell 10.2% last month from April, according to PropertyRadar.com
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Homes that had been foreclosed upon within the last year accounted for 11.4% of homes resold in California — the lowest point since August 2007, DataQuick said. Short sales also dropped last month compared to May 2012.
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Statewide, the median has increased year-over-year for 15 straight months but is still below a peak of $484,000 reached in spring 2007.
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