California Association of Realtors reports that the unsold inventory index for existing, single-family homes in July was 6.7 months, down from 10 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. The median number of days it took to sell a single-family home was 47.5 days, compared with 50.7 days for the same period a year ago.

California's Top 10 Cities With The Highest Median Home Prices

   1. Manhattan Beach, $1.77 million
   2. Los Gatos, $1.42 million
   3. Mill Valley, $1.37 million
   4. Burlingame, $1.29 million
   5. Calabasas, $1.18 million
   6. Newport Beach, $1.14 million
   7. Cupertino, $1.04 million
   8. Rancho Palos Verdes, $1 million
   9. San Carlos, $975,000
  10. Danville, $930,000

California's Top 6 Cities With The Highest Median Home Price Increases (July 2008 vs July 2007)

1. Los Gatos – 36.6%
2. Mill Valley – 28.6%
3. Manhattan Beach – 9%
4. Berkeley – 8.2%
5. Mountain View – 6.9%
6. Cupertino – 1.1%