Nice excerpt from Ben’s Housing Bubble Blog:
The California realtors report on April sales. “Home sales decreased 27.8 percent in April in California compared with the same period a year ago, while the median price of an existing home increased 6.2 percent, CAR reported today. ‘April sales fell in part because of tighter credit standards and growing concerns about the impact of subprime loans on the market,’ said C.A.R. President Colleen Badagliacco. ‘Throughout the state inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market.’”
“‘Although the median price of a home in California continues to rise, this reflects the fall-off in sales in the lower-priced markets of the state where new home inventories and foreclosures are competing with the existing home market,’ said C.A.R. Chief Economist Leslie Appleton-Young. ‘Fewer sales from these regions coupled with modest gains in some of the stronger coastal markets are pushing the median price for the state up slightly.’”
This supports the analysis that this latest drop is worse for low-end markets suffered from the woes of sub-prime loans. A change in the mix of houses sold really skewed the median price data.