Sales of existing, single-family homes rose 1.7 percent in December, while the median price rose 8.4 percent compared with the prior year, according to California Association of Realtor's latest sales and price report.  The median price of an existing, single-family detached home in California during December 2009 was $306,820, an 8.4 percent increase from the revised $283,060 median for December 2008, according to the report.  The December 2009 median price rose 0.8 percent compared with November’s $304,520 median price.

“As expected, the large year-to-year sales gains have diminished substantially compared with earlier in the year,” said California Association of Realtor's President Steve Goddard.  “However, home sales in December were strong, and were comparable to sales of late 2008.  Activity in December can be attributed in part to the extension and expansion of the home buyer tax credit, as well as near-historic highs in affordability due to current price levels and low interest rates.”