C.A.R. REPORTS HOME SALES DECREASED 21.1 PERCENT IN MAY
The median price of an existing single-family home in California increased 8 percent in May and sales decreased 21.1 percent compared with the same period a year ago, C.A.R. recently reported. "This is the first time since November 2001 that the median price did not increase by double digits, reflecting the return to the more balanced market that we have anticipated," said C.A.R. President Vince Malta. "Interest rates, while still historically low, continue to impact sales as did the inventory of homes for sale, which reached nearly a six-month supply in May."

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Real estate slowdown won't cause recession
UCLA forecast: Risk of housing crash greater than people think
Wednesday, June 21, 2006
By Glenn Roberts Jr.
Inman News

If history is any indication, the country may be heading for a housing crash, according to the Anderson Forecast, a product of the University of California, Los Angeles.
"The risk of a housing crash rather than a slowdown is far greater than what most people think. In fact history is on the side of a crash," stated David Schulman, a senior economist for the UCLA Anderson Forecast, in his report, "Housing, Inflation and the Fed," released today. He added, "Every major housing cycle of the past 45 years ended with activity declines in excess of 50 percent. Because the current cycle was so powerful, why should we expect any less?"

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A war in Saratoga as the city counsel wants a soccer field and residence say NO and want Kevin Moran Park to remain as a city park!

Kevin Moran Park plan goes to council ... one more time
Heavily contested plans to develop Kevin Moran Park went before the Saratoga City Council once again on June 7. At the meeting, more than 50 people told Mayor Norman Kline and council members why they were for or against the project.
Dave Nelson, the city's design consultant for the renovations, admitted his inability to create a plan for the park that suited the needs of all residents. "Every plan gains some acceptance from some people, and is rejected by other people," he said.
He later added, "If you please every tenant, you can't put a soccer field in this park." Saratoga residents who oppose the renovations greeted that statement with applause.

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California Association of Realtors (C.A.R.) REPORTS HOME SALES DECREASED 21.4 PERCENT IN APRIL

The median price of an existing single-family home in California increased 10.2 percent in April and sales decreased 21.4 percent compared with the same period a year ago, C.A.R. recently reported. "Sales fell this year compared with April 2005 when they hit the second-highest monthly pace on record. Concerns about the likelihood of future interest rate increases continue to influence the market," said C.A.R. President Vince Malta. "While still near their historic lows, mortgage interest rates are at their highest level since June 2002 for fixed-rate mortgages, and August 2001 for adjustable-rate mortgages."

According to the report, the median price of an existing, single-family detached home in California during April 2006 was $562,380, a 10.2 percent increase over the revised $510,400 median for April 2005. The April 2006 median price was essentially unchanged compared with March's revised $562,630 median price. Also in April, closed escrow sales of existing, single-family detached homes in California totaled 516,960, down 21.4 percent compared with the sales pace recorded one year earlier and down 4.1 percent from home resale activity in March.