SALES OF HOMES COOL IN OCTOBER EXPERTS SAY LOCAL HOUSING MARKET HASN'T BOTTOMED OUT YET.

Byline: GREGORY J. WILCOX Staff Writer

California's residential real estate market cooled dramatically in October with prices falling below the year-ago level in a majority of major markets and sales posting the weakest total for the month in 18 years, a trade group said Tuesday.

Last month, statewide sales of previously owned homes fell 28.7 percent, said the California Association of Realtors, and the median price rose 2 percent. But it declined in 14 of the 20 major markets tracked by the Los Angeles-based group. And in seven markets, including Orange and San Diego counties, the median price has fallen below its year-ago point for three consecutive months.

That kind of pattern could start spreading.

``I don't think it's a surprise we're starting to see some parts of the state show negative (price) changes,'' said Robert Kleinhenz, the association's deputy chief economist.

In some areas, the price declines could dip into double digits percentage-wise but most will be single-digit declines, he said.

If sales proceeded at October's pace all year, 443,320 properties would change hands. That's the smallest annualized rate for the month since 478,770 projected sales in October 1988.

Sales have now been at their current level for three months.

``While it appears that home sales have stabilized over the past three months, it's too soon to say whether or not the market has bottomed out,'' association president Colleen Badagliacco said in a statement. ``We do expect smaller year-over-year declines in home sales for the remainder of the year.''

Kleinhenz expects this year's sales to decline 23 percent from the 624,960 transactions in 2005.

The association's report showed that:

In Los Angeles County, sales declined 24.6 percent annually and were down 15.1 percent monthly. The median price, the point at which half the units cost more and half less, increased 4.6 percent annually to $583,160. It slipped 0.4 percent from September.

In Ventura County, the median price fell an annual 1 percent to $671,330 and declined 2.2 percent from September. Sales declined 20.3 percent annually and increased 7.2 percent monthly.

In the High Desert, which includes the Antelope Valley, the median price increased an annual 4 percent to $328,650, but it fell 0.1 percent from September. Sales fell 34.6 percent annually and 11.9 percent monthly.

Sales fell in all major markets, with the declines ranging from 50 percent in north Santa Barbara County to 10.4 percent in northern wine country.

Statewide, the median price was $548,680.

Sales fell in all major markets, with the declines ranging from 50 percent in north Santa Barbara County to 10.4 percent in northern wine country.

October ended with a 7.2- month inventory -- how long it would take to burn through the supply at the current sales pace. That is double the year-ago level.

``The market is still in a decline. Most people don't look for it to really bottom out until late 2007,'' said Jack Kyser, chief economist at the the Los Angeles County Economic Development Corp.