November 15, 2007 (LPAC)--California home sales last month were at the lowest level for the month of October in more than 20 years, according to real estate research firm DataQuick Information Systems. Further, October 2007 was the 25th consecutive month in which statewide sales fell compared to the same month the previous year.

One of the key problems is that lenders have cut back on so-called "jumbo loans" (greater than $417,000), since in the California market, "homes are often valued in excess of $417,000"; according to DataQuick, California home sales financed by jumbo loans declined in October by more than half (compared with July) in several of the state's biggest housing markets.