The median price of an existing home in California during April 2006 was $562,380, a 10.2% increase over the $510,400 median for April 2005. The April 2006 median price was essentially unchanged compared with March’s $562,630 median price. In addition, sales decreased 21.4% compared with the same period a year ago, the California Association of Realtors 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.”

“At 10.2% in April, we’re seeing price appreciation trend toward a more sustainable rate for the California housing market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Increased inventory levels are moderating the rate of price appreciation, but are still below what we experience in a more traditional market when the long-term supply of unsold inventory is about 7 months.”