California Home Sales and Median Prices in July

The California Association of Realtors recently released their report on California existing home sales and median prices in July. The statewide median price in July was $488,260, down by 0.3% from June but up by 5.4% from a year earlier. Despite sustained increases over the last two years, the statewide median is still $100,000 shy of the previous peak of $595,500 that was established in May 2007. By comparison, a separate release from the National Association of Realtors reported that the national median price in July was $234,000 (for all homes).

Statewide, the number of single-family homes that closed escrow in July increased by 12.7% over the year to 449,530 units (seasonally adjusted, annualized rate) and was up by 2.7% from June. Home sales in July reached their highest level since October 2012 and was the fourth straight month in which sales rose above 400,000 units.

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 July on a 30-year fixed-mortgage averaged 4.05%, up from 3.98% in June, and only slightly below the year ago rate of 4.13%. According to the CAR home affordability index, only 30% of California households could afford to purchase a median priced home during the second quarter of this year, down from 34% during the first quarter. The comparable number for the U.S. as a whole is 57%. Affordability peaked in California during this cycle at 56% in the second quarter of 2012.  If demand continues to outstrip supply, especially in metro areas with strong job growth, declining affordability will become even more acute.

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.

§  Los Angeles County:  unit sales increased by 14.2% over the year in July, while the median price rose by 5.4% to $486,310.

§  Orange County: a jump in sales of 21.3% was accompanied by an increase in the median price of 3.9% to $722,170.

§  Riverside County:  sales of existing homes rose by 14.4% and the median price increased by 5.8% to $338,510.

§  San Bernardino County:  sales increased by 16.7% in July with the median price rising by 5.9% to $230,180.

§  San Diego County:  unit sales climbed by 25.1% and the median price rose by 7.6% to $622,580.

§  Ventura County:  sales were up by 23.3% over the year while the median price moved up by 6.3% to $622,580.

Source: http://www.car.org/newsstand/newsreleases/2015releases/july2015sales?view=Standard