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Luxury Home Sales Soar in California While Overall Home Sales Fall

California’s million dollar home sales jumped to 45.1 percent in 2013, according to real estate information
service DataQuick. The median down payments sat around 30 percent and were mostly financed by
Union Bank, Bank of America, and Wells Fargo.
The luxury home market continues to be a unique one with it’s own set of economic standards. According
to DataQuick president John Walsh, specifically homes over the $2 million threshold avoid dealing with the
traditional market factors.
Meanwhile, general home sales in Gold State dropped .6 percent in 2013. The California Association of
Realtors (CAR) released its Traditional Housing Affordability Index reporting an overall decline in levels of
affordability.
According to the report, only 32 percent of homebuyers could actually afford to purchase a median
-priced home. The median home price for Q4 2013 jumped to $431,510, almost $80,000 from this time last year.
The high price of homes means that homebuyers will need to earn an annual income of at least $89,240
to afford the purchase. Affordability in California has declined for six consecutive quarters.
It is believed that a significant lack of housing supply and high demand drove up home prices, significantly
reducing affordability.

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