California Home Sales and Median Prices in May

The California Association of Realtors released their report on California existing home sales and median prices in May. The statewide median price rose over the 12 months ending in May by 4.4% to $485,830. Compared with April, the median price was up by 0.8%. The May median price was also the highest recorded since November 2007.

Statewide, the number of single-family homes that closed escrow in May increased by 8.9% over the year to 423,360 units (seasonally adjusted, annualized rate) but was down by 1.1% from April. Home sales in May reached their highest level in nearly two years and was the second straight month in which sales rose above 400,000 units. Momentum in California’s housing market is looking pretty solid, although conditions vary significantly by metro area with several still posting a year-to-year sales declines. San Francisco was among that group with a drop of 13% in May.

With home prices continuing to rise and mortgage interest rates edging up ahead of the expected rate increase by the Federal Reserve, housing affordability is becoming more and more of a concern. The interest rate in May on a 30-year fixed-mortgage averaged 3.84%, up from 3.67% in April, but still below the year ago rate of 4.19%.

Below is a year-over-year summary of sales and price activity in Southern California by county. Although the statewide sales figures are seasonally adjusted, regional and county figures are not. In four of the six counties, sales rose at a faster rate than prices – something we have not seen for a while.

§  Los Angeles County:  unit sales increased by 2.2% over the year in May, while the median price rose by 5.1% to $432,570.

§  Orange County:  sales rose by 4.9% last month accompanied by an increase in the median price of 2.8% to $717,850.

§  Riverside County:  sales of existing homes rose by 7.8% and the median price increased by 2.7% to $332,490.

§  San Bernardino County:  sales increased by 12.7% in May with the median price rising by 3.0% to $220,890.

§  San Diego County:  unit sales were up by 6.5% and the median price rose by 8.2% to $538,660.

§  Ventura County:  sales jumped by 16.4% over the year while the median price moved up by 9.2% to $620,460.

Source: http://www.car.org/newsstand/newsreleases/2015releases/may2015sales?view=Standard