The momentum in existing-home sales in San Joaquin County has continued to build, with May sales reaching the highest monthly level since August 2005 as more buyers snapped up primarily foreclosure properties.

Last month, 826 houses were sold countywide, according to figures from the latest Coldwell Banker Grupe-TrendGraphix monthly sales report, based on Multiple Listing Service data. That's four consecutive months of closed-sale increases.

The median selling price also continued to slip, sliding from $240,000 in April to $237,000 last month throughout the county, the report said.

That's the lowest median price seen in the county since February 2003.

The most recent foreclosure figures for San Joaquin County indicated about 800 houses per month were foreclosed in the first quarter of the year, according to Irvine-based RealtyTrac, which markets data on foreclosure properties.

Still, the number of listings in the county continued to drop.

In September, when sales were at the low point since the home sales market turned down, there were nearly 6,100 existing houses for sale countywide. Last month, that number had fallen to about 4,800, a 20.6 percent decline.

In September, there were enough houses on the market to last more than 26 months at the sales pace that existed then of 230 homes per month.

At the current sales pace, the lower number of existing homes for sale would be gone in less than six months.

The most interesting trend is the decline in the number of homes for sale, said Ben Balsbaugh, residential sales manager for PMZ Real Estate in Stockton.

"This is clearly a sign that prices are eventually going to start creeping up again," Balsbaugh said.

The lower prices are allowing many first-time buyers and families back in the market, he said, and lots of them are local buyers.

Balsbaugh said that unfortunately for many buyers these days, trying to buy can be very frustrating. It's not uncommon for there to be five to 10 offers on a property, he said.

Art Godi of Art Godi Realtors in Stockton said the current sales market feels good, even though lending remains tight, but he added: "It's a different good."

In a traditional sales market, a cross section of houses sell, he said. Currently, about 90 percent of sales are foreclosures and short sales, and almost all are under $250,000, he said, "and that's the bottom of the market."

"You can get a lot of houses now in that range," he said.

Few properties above that $250,000 mark are selling, he said, while competition usually is fierce for those below it.

One couple trying to buy a house they liked found out there were already 21 offers on it, he said.

Meanwhile, the Dallas-based auctioneering firm of Hudson & Marshall, which in November staged the first auction of foreclosed homes in Stockton, will be back for another Stockton auction Wednesday. This is a reserve auction, which means sellers have the right to accept or reject any bid.

Hudson & Marshall put 61 foreclosed homes up for auction seven months ago. This round, there will be 76 homes. The firm will auction more than 500 bank-owned foreclosure houses this week in Stockton, Modesto, Fresno, Sacramento, Yuba City, the Bay Area and the Seaside/Salinas area.

For details about the auctions and complete property listings, go to www.hudsonandmarshall.com or call (866) 539-4172.

The auction will begin at 7 p.m. Wednesday in the Stockton Grand Hotel, 2323 Grand Canal Blvd. Bidders are encouraged to be there an hour earlier.

Contact reporter Bruce Spence at (209) 943-8581 or bspence@recordnet.com.