Home sales increased 12 percent in July in California , according to the latest sales and price report released by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

First time tax credits: Many housing analysts believe the first-time home buyers tax credit has helped fuel home sales in recent months.  According to a survey of first-time home buyers, nearly 40 percent reported they would not have purchased a home if the tax credit was not offered.

The median price of an existing, single-family detached home in California  rose 3.9 percent compared with June.  The median price statewide during July 2009 was $285,480.  July marked the fifth consecutive month of month-to-month increases in the median price and the smallest yearly decline in 19 months.

C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in July 2009 was 3.9 months, compared with 6.9 months for the same period a year ago.  (This is actually indicative of the tides turning and it becoming a seller’s market)

Thirty-year fixed-mortgage interest rates averaged 5.22 percent during July 2009, compared with 6.43 percent in July 2008, according to Freddie Mac.

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