Home sales in California dropped for the sixth month in row in January, according to the California Association of Realtors.Closed sales of existing, single-family homes stood at a seasonally adjusted annualized rate of 363,640 last month, flat from December but down 13.8 percent from January 2013.CAR attributed the decline to continued low inventory and sinking home affordability due to increasing home prices. The median home price in California last month was $410,990, up 22.1 percent from the previous year. January marked the 23rd month straight in which the median has increased year over year and the 19th month straight to have a double-digit jump.With rising home prices and home sales continuing to dip, CAR's report wasn't entirely bad news. While inventory remained low, the supply of existing single-family homes rose to 4.3 months last month, up from 3 months in December and 3.5 months in January 2013. CAR considers a six-to-seven month supply typical in a "normal" market.
