California Home Sales and Median Prices in September

The California Association of Realtors recently released their report on California existing home sales and median prices in September. The statewide median price last month was $482,150, down slightly (by 2.3%) compared with August but up by 4.3% from the year ago figure. Although home prices continue to rise on a year-over-year basis, they may have reached their peak for this year. While it is typical for the median price to reach its peak for the year somewhere between June and August, the geographic distribution of sales is also affecting the statewide median. The CAR report noted that more homes are now being sold in the Central Valley where the median price is lower than in coastal metro areas. The share of homes sold in the Central Valley increased from 25.5% last year to 26.4% this year, while in the Bay Area the share decreased from 18.8% to 17.2%. As the share of homes sold in lower-cost areas rises relative to more expensive regions, increases in the state-wide median price will moderate.

The number of single-family homes in California that closed escrow in September rose by 6.9% over the year to 425,030 units (seasonally adjusted annualized rate). Compared with August, sales were down by 1.5%. Home sales in September were up over the year for the eighth straight month.

Inventories continue to be very tight. State-wide the inventory of homes for sale in September was 3.7 months, unchanged over the month but down from 4.2 months from a year ago. In the Los Angeles metro area, there was a 3.9-month supply in September. The Inland Empire reported 4.4 months, while in the San Francisco Bay area there was only a 2.5-month supply.

Interest rates are still quite low, dipping over the month from 3.91% in August for a 30-year fixed rate mortgage to 3.89% in September. A year ago the average interest rate was 4.61%.

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 9.6% over the year in September, while the median price rose by 6.5% to $517,750.

§  Orange County: sales jumped by 13.8% and the median price was up by 1.7% to $707,700

§  Riverside County:  sales of existing homes climbed by 10.4% and the median price increased by 4.0% to $329,200.

§  San Bernardino County:  sales rose by 9.2% in September with the median price rising by 8.0% to $229,890.

§  San Diego County:  unit sales were up by 4.8% and the median price rose by 3.8% to $539,340.

§  Ventura County:  sales shot up by 34.7% over the year while the median price edged up by 1.8% to $599,710.

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