The median price of an existing home in California in May increased 26.5 percent and sales increased 10.5 percent compared to the same period a year ago, according to a report from the California Association of Realtors.

"The real estate market has kicked into high gear with the prime summer selling season under way," said CAR President Ann Pettijohn. "The up-tick in mortgage interest rates has only accelerated the demand for housing in California," she said. "The median price posted the greatest percentage increase on record, pushing the median price to a new high of $465,160."

Closed escrow sales of existing, single-family detached homes in California totaled 632,380 in May at a seasonally adjusted annualized rate, according to information collected from more than 90 local Realtor associations statewide. Statewide home resale activity increased 10.5 percent from the 572,260 sales pace recorded in May 2003.

The statewide sales figure represents what the total number of homes sold during 2004 would be if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during May 2004 was $465,160, a 26.5 percent increase over the revised $367,630 median for May 2003.

"Year-to-date sales increased 6.7 percent compared to the same period in 2003," said Leslie Appleton-Young, the association's vice president and chief economist. "However, rising mortgage interest rates will result in slightly slowing sales for the remainder of the year compared to the first half of 2004."

Thirty-year fixed mortgage interest rates averaged 6.27 percent during May 2004, up from 5.48 percent in May 2003, according to Freddie Mac. Adjustable mortgage interest rates averaged 3.88 percent in May 2004 compared to 3.66 percent in May 2003.

The median number of days it took to sell a single-family home was 24 days in May 2004, compared to 27 days (revised) for the same period a year ago.

Statewide, the 10 cities and communities with the highest median home prices in California during May 2004 were: Palos Verdes Estates, $1,350,000; Manhattan Beach, $1,350,000; Los Altos, $1,347,500; Malibu, $1,250,000; Beverly Hills, $1,185,000; Laguna Beach, $1,155,000; Newport Beach, $1,132,500; Saratoga, $1,087,500; Del Mar, $1,060,000; Calabasas, $987,500.

Los Gatos just missed the top 10 with a median sales price of $975,000 for May.

Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.