The median price of an existing home in California in June increased 16 percent and sales increased 3.6 percent compared with the same period a year ago, according to a report issued by the California Association of Realtors.

"Fixed mortgage interest rates have fallen compared with a year ago, and remain below 6 percent," the association's president, Jim Hamilton, said. "This continues to propel both sales and the median price of a home as consumers gauge current market conditions against future interest rate increases."

Closed escrow sales of existing, single-family detached homes in California totaled 656,310 in June at a seasonally adjusted annualized rate, according to information collected from more than 90 local Realtor associations statewide. Statewide home resale activity increased 3.6 percent from the 633,660 sales pace recorded in June 2004.

The statewide sales figure represents what the total number of homes sold during 2005 would be if sales maintained the June 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 June 2005 was $542,720, a 16 percent increase over the revised $468,050 median for June 2004. The June 2005 median price increased 3.8 percent compared with May's revised $522,900 median price.

"Inventory levels in recent months were nearly double that of a year ago," said Leslie Appleton-Young, California Association of Realtors vice president and chief economist. "This has contributed to the increased pace of home sales in the presence of continued strong demand for housing in California."

Thirty-year fixed mortgage interest rates averaged 5.58 percent during June 2005, compared with 6.29 percent in June 2004, according to Freddie Mac. Adjustable mortgage interest rates averaged 4.24 percent in June 2005 compared with 4.10 percent in June 2004.

The median number of days it took to sell a single-family home was 27 days in June 2005, compared with 23 days (revised) for the same period a year ago.

The Multiple Listing Service median price is generated from a survey of more than 90 associations of Realtors throughout the state. The median price for both detached homes and condominiums represents closed escrow sales.

In a separate report covering more localized statistics generated by California Association of Realtors and DataQuick Information Systems, 97.5 percent or 396 of 406 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than Multiple Listing Service information.

Statewide, the 10 cities and communities with the highest median home prices in California during June 2005 were: Manhattan Beach, $1,570,000; Malibu, $1,550,000; Laguna Beach, $1,537,500; Los Altos, $1,424,000; La Canada Flintridge, $1,395,000; Palos Verdes Estates, $1,360,000; Saratoga, $1,350,000; Newport Beach, $1,300,000; Coronado, $1,275,000; Hermosa Beach, $1,249,500.

The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.