Home sales were up 17.5 percent in June while the median price of an existing home fell 37.7 percent. The surge was led by home sales in the Inland Empire region of California, with sales up a whopping 75.4 percent over June 2007 figures. The median price of homes sold in that area was $262,000. Home sales were up by 19 percent in the Palm Springs area, while Orange County home sales were up 18 percent.

?EUR??,,????'??Statewide home sales remained above the 400,000 level for the second month in a row, and up nearly 18 percent from a year ago,?EUR??,,????'?? said C.A.R. President William E. Brown. ?EUR??,,????'??Sales were driven in part by large shares of deeply discounted distressed sales in many parts of the state. With lower prices and favorable interest rates, affordability also has improved significantly in recent months, paving the way for many buyers to purchase their first home.?EUR??,,????'??

The median price of an existing, single-family detached home in California during June 2008 was $368,250, a 37.7 percent decrease from the revised $591,280 median for June 2007, C.A.R. reported. The June 2008 median price fell 4.3 percent compared with May?EUR??,,????'???s $384,840 median price.

?EUR??,,????'??The significant declines in the median price over the past several months are largely due to a dramatic shift in the sales mix since the onset of the credit crunch and the increase in the share of distressed sales,?EUR??,,????'?? said C.A.R. Chief Economist Leslie Appleton-Young. ?EUR??,,????'??A year ago, the under $500,000 price range accounted for 40 percent of sales, the middle segment made up about 45 percent, and the over $1 million segment captured 15 percent of the market. As of June 2008, the shares had shifted to 67 percent, 24 percent, and 9 percent, respectively.?EUR??,,????'??