Sales of existing homes in California in December declined 3.6 percent and the median home price rose 11.8 percent compared to the same period a year ago, the California Association of REALTORS® and Transamerica Intellitech, a real estate information service, reported today. "Consumer optimism as we enter the new century remains high," said C.A.R. President Richard F. Gaylord. "But affordability is becoming a concern in California as prices continue to rise amid shrinking inventory levels."

Closed escrow sales of existing, single-family detached homes in California totaled 631,880 in December at a seasonally-adjusted annualized rate, according to information collected by C.A.R. from more than 90 Multiple Listing Services (MLS) statewide. Statewide home resale activity was down 3.6 percent from the 655,310 sales pace recorded in December 1998. Resale activity posted a decrease of 5.2 percent in December 1999 compared to November 1999.

The statewide sales figure represents what the total number of homes sold during 1999 would be if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.