The new state tax credit has pumped a little life into the high-end market. With more sales in that segment of the market, the average price for single-family, re-sale homes in July went over $1,000,000 for the first time since July 2008.

Sales of both single-family, re-sale homes and condos fell in July with the expiration of the Federal tax credit.

Home sales were off 0.3% compared to last July, while condo sales were down 16.3%.

The high-end market has been helped by increasing access to jumbo and super-jumbo loans. Historically, and until July 2007, the spread or difference between conforming mortgage rates and jumbo rates moved within a narrow range of about 0.20%. At the trough of the market, the spread was 1.9%. Now, the spread is down to 0.5%, and the secondary market for jumbo loans is awakening.

The median price for homes was up 3.4% from June, and it was up 4.8% year-over-year. The average price was up 5.6% from June and up 7.6% compared to last July. This is the ninth month in a row the median price has been higher than the year before.

The sales price to list price ratio for homes stayed over 99% for the seventh month in a row: 99.3%.

The median and average prices for condos were down 4.6% and 10.7% respectively year-over-year.

Pending home sales were down from June, but were still higher than the year before. Pending home sales were up 38%, while pending condo sales rose 17.1%.

Inventory for homes was up 27.2% year-over-year. This is the third month in a row inventory has been higher than the year before.

Speaking of inventory, Leslie Appleton-Young, chief economist for the California Association of REALTORS® (C.A.R.), said, at a recent Silicon Valley Association of REALTORS®  (SILVAR) meeting in Palo Alto last month, in five to ten years California will experience a housing shortage.

She said household growth for the state is expected to be 200,000 a year. The CBIA reports only 13,000 permits pulled in the first six months of the year.

Remember, the real estate market is a matter of neighborhoods and houses. No two are the same. For complete information on a particular neighborhood or property, call me.