While consumer confidence is up, the housing market also continues to climb with the median price of an existing home in California in May increasing 12.8 percent, compared with the same period a year ago, according to a report released by the California Association of Realtors.

"The California housing market passed an important threshold in April, when the median price rose above $500,000 for the first time," said the association's president, Jim Hamilton. "This trend continued in May, with the median price approaching $525,000. At these prices, eroding affordability and concerns about rising interest rates are constraining sales."

Closed escrow sales of existing, single-family detached homes in California totaled 618,920 in May at a seasonally adjusted annualized rate, according to information collected by the association of more than 90 local Realtor associations statewide. Statewide home resale activity decreased 2.1 percent from the 632,380 sales pace recorded in May 2004.

The median price of an existing, single-family detached home in California during May 2005 was $522,590, a 12.8 percent increase over the revised $463,320 median for May 2004, the association reported. The May 2005 median price increased 2.5 percent compared with April's revised $509,630 median price.

"Inventory levels, which have been at or above three months since July 2004, fell below three months beginning in March and have ranged between 2.6 and 2.8 months since that time," Leslie Appleton-Young, California Association of Realtors vice president and chief economist, said. "While not at the record low levels we experienced earlier last year, the tight inventory of homes for sale has impacted sales over the past couple of months."

Thirty-year fixed mortgage interest rates averaged 5.72 percent during May 2005, compared with 6.27 percent in May 2004, according to Freddie Mac. Adjustable mortgage interest rates averaged 4.23 percent in May 2005 compared with 3.88 percent in May 2004.

The median number of days it took to sell a single-family home was 27 days in May 2005, compared with 22 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 2005 were: Los Altos, $1,620,000; Beverly Hills, $1,450,000; Saratoga, $1,428,500; Manhattan Beach, $1,375,000; Laguna Beach, $1,302,500; Newport Beach, $1,300,000; Burlingame, $1,237,500; Coronado, $1,225,000; Santa Barbara, $1,188,000; Palos Verdes, $1,147,500.

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 gmeissner@silvar.org.