There was no recession in California home prices during December. The median price of an existing single family home in California rose more than eleven percent to 277 thousand dollars compared to a year earlier.
The California Association of Realtors says the number of home sales dropped just one percent from December of 2000, but was down about four percent from the previous month. Aiding the home market were mortgage rates near a 30 year low, just over seven percent. Although demand for California housing will continue to outpace supply, experts says big price increases are not likely to continue through 2002, and housing interest rates are expected to rise.