Home sales fell in June as the inventory of single family homes for sale continued to decline.

The median home price increased 5.9 percent from a year ago to $131,785, the fifth straight month of
rising prices. It's the highest median price since December 2010.

Single family home sales dropped to 3,214 in June, an 11.4 decrease from the same month a
year ago, while 731 townhomes and condos were sold, down nearly 20 percent from a year ago.

Short sales pushed higher to 1,350 in June, or 34.2 percent of all sales. The number of real
estate or bank owned homes sales fell to 1,097 homes, or 27.8 percent of all sales.

Inventory of single family homes available for sale in June fell to 25.4 percent to 16,930. Of these,
3,690 homes are available without a pending or contingent offer.

The good news for people wanting to sell their homes if the 11.5 increase in the median price of
new listings which went to $144,900. The median price for real estate owned homes rose 5.4 percent
to $118,000, while short sale prices dipped to 1.2 percent to $117,250.

Most of these contracts were written 60 days ago or more, and don't reflect today's prices, said the
President of the Realtors Group.

"Overall, prices are going up a bit but I don't know if its going to sustain itself. It depends how the
lenders handle the remaining inventory of REOs."

She said the banks are giving incentives for short sales, including $3,000 in relocation expenses, to
avoid going into foreclosure.