Home sales decreased 29.9% in July compared with the same period a year ago, while the median price of an existing home increased 5.1%, the California Association of Realtors reported. Closed escrow sales of existing, single-family detached homes in California totaled 453,980 in July. Statewide home resale activity decreased 29.9% from the 647,910 sales pace recorded in July 2005.

The median price of an existing, single-family detached home in California during July 2006 was $567,360, a 5.1% increase over the revised $539,840 median for July 2005, C.A.R. reported. The July 2006 median price decreased 1.5% compared with June’s $575,800 median price.

“Today’s market is slowing as sellers maintain often unrealistic pricing expectations and buyers have more properties to choose from,” said C.A.R. President Vince Malta. “In addition, unlike the slowdown we experienced in the 1990s, homeowners today are not under duress to sell due to job losses. The urgency that characterized the market for the last few years is now gone for all but well-priced properties.”

“With inventory levels double that of a year ago, annual price appreciation for the state slowed from the double-digit rates we experienced throughout all of last year to single digits this year,” he said. “And in some regions of the state prices are down from a year ago. However, with a 7.5-month supply of homes for sale in July, we’re far below the peak of February 1991, when there was an 18-month supply on the market.”

“Many markets in California are mirroring other major metropolitan areas of the nation.—a return to a more sustainable and balanced housing market compared to the frenetic pace of the past several years,” said C.A.R. Chief Economist Leslie Appleton-Young. “We’ve known that double-digit appreciation would eventually change when the underlying fundamentals change, which has been the case with expanded supply and rising interest rates. Affordability concerns prompted by higher prices and interest rate increases also are constraining sales. The monthly home payment has increased by 20 percent for many households in the state compared with last year.”