California Home Sales and Median Prices in August

The California Association of Realtors recently released their report on California existing home sales and median prices in August. The statewide median price last month was $493,420, up slightly (by 1.0%) compared with July and higher by 2.5% than the year ago figures. Despite more than three years of continuous price gains, the statewide median price is 17.1% below the peak reached in May 2007.

The number of single-family homes in California that closed escrow in August increased by 9.3% over the year to 431,800 units (seasonally adjusted annualized rate). Compared with July sales were down by 3.8%. Home sales in August were at their highest level since October 2012 and was the fifth straight month in which sales rose above 400,000 units.

Home prices are increasing at a healthier rate, meaning they have slowed from the breakneck pace that prevailed in 2013 and 2014 to something that more accurately reflects the fundamentals of housing demand: job and wage growth.  Still, much of the appreciation that is occurring statewide is being fueled by supply constraints in the Bay Area were the median price was up by 10.4% to $804,190, but sales were flat over the year. Elsewhere, sales are on the rise in the Inland Empire and Central Valley, where homes are both more affordable and available.

While momentum is building in California’s housing markets, higher mortgage interest rates and reduced affordability are creating an environment of uncertainty that may cause some potential buyers to take a step back from the market.

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 4.4% over the year in August, while the median price rose by 3.7% to $492,360.

§  Orange County: sales edged higher by 1.0% and the median price was up by 2.2% to $714,550

§  Riverside County:  sales of existing homes rose by 6.5% and the median price increased by 5.8% to $337,110.

§  San Bernardino County:  sales climbed by 19.2% in August with the median price rising by 10.5% to $230,530.

§  San Diego County:  unit sales were up by 11.3% and the median price rose by 9.1% to $557,400.

§  Ventura County:  sales were up by 8.6% over the year while the median price rose by 3.0% to $620,150.

Source: http://www.car.org/newsstand/newsreleases/2015releases/august2015sales