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Lower Interest Rates Perk Up California Home Sales in June; Market More Balanced, C.A.R. Reports

July 16, 2014

LOS ANGELES--(BUSINESS WIRE)-- Lower interest rates and stabilizing home prices combined to boost home sales in June, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. However, diminished home affordability remains a challenge for buyers, particularly in high cost areas of the state.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 394,930 units in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. June marked the eighth straight month that sales were below the 400,000 level and the eleventh straight decline on a year-over-year basis. Sales in June increased 1.5 percent from a revised 389,060 in May but were down 4.8 percent from a revised 414,830 in June 2013. The statewide sales figure represents what would be the total number of homes sold during 2014 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

“While June home sales rose at the statewide level, the market is still constrained by tight supply and low housing affordability in areas of high demand, where job growth is robust and international buyers have a strong presence,” said C.A.R. President Kevin Brown. “Overall, however, with inventory improving and home sales slowly moving back up, the market is more balanced, and we could see further market normalization in the upcoming months as interest rates remain at the lowest levels we’ve seen so far this year.”

The statewide median price of an existing, single-family detached home slipped 2 percent from May’s median price of $466,320 to $457,160 but was up 6.6 percent from the revised $428,700 recorded in June 2013. The statewide median home price has increased year over year for the previous 28months, marking more than two full years of consecutive year-over-year price increases. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“Home prices are finally increasing at a healthier pace, and the smallest year-over-year price gain in more than two years suggests that prices are stabilizing,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Last year’s frenzied market of multiple offers, which drove sales prices above listing prices, has tapered off as the sales-to-list price ratio has dropped to a more normal level at nearly 99 percent, which signals a return to a more balanced market.”

Other key facts from C.A.R.’s June 2014 resale housing report include:

  • Housing inventory edged slightly higher in June, with the available supply of existing, single-family detached homes for sale increasing from 3.6 months in May to 3.7 months in June. The index was 2.9 months in June 2013. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.
  • The median number of days it took to sell a single-family home also rose in June, up from 31.6 days in May to 33.9 days in June and up from 27.8 days in June 2013.
  • Mortgage rates dipped in June, with the 30-year, fixed-mortgage interest rate averaging 4.16 percent, down from 4.19 percent in May but up from 4.07 percent in June 2013, according to Freddie Mac. Adjustable-mortgage interest rates in June averaged 2.40 percent, down from 2.43 percent in May and down from 2.60 percent in June 2013.

    Graphics (click links to open):

  • June sales at-a-glance infographic.
  • Unsold Inventory by price range.
  • Change in sales by price range.
  • Share of sales by price range.

    Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes June exhibit unusual fluctuation. The change in median prices should not be construed as actual price changes in specific homes.

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    Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

     

    June 2014 County Sales and Price Activity

    (Regional and condo sales data not seasonally adjusted)

         
    June 2014Median Sold Price of Existing Single-Family HomesSales
    State/Region/County

    June 2014

       

    May 2014

       

    June 2013

       

    MTM% Chg

     

    YTY% Chg

    MTM% Chg

     

    YTY% Chg

    Calif. Single-family (SAAR)     $ 457,160     $ 466,320   r   $ 428,700   r   -2.0 %   6.6 %   1.5 %   -4.8 %
    Calif. Condo/Townhome     $ 372,070     $ 376,040       $ 342,840       -1.1 %   8.5 %   0.4 %   -0.2 %
    Los Angeles Metropolitan Area     $ 416,290     $ 425,900       $ 393,530   r   -2.3 %   5.8 %   -2.6 %   -5.2 %
    Inland Empire     $ 279,060     $ 280,060       $ 248,760       -0.4 %   12.2 %   2.6 %   -2.3 %
    San Francisco Bay Area     $ 771,610     $ 768,910       $ 701,360       0.4 %   10.0 %   0.4 %   -3.7 %
                                                 
    San Francisco Bay Area                                            
    Alameda     $ 743,810     $ 749,330       $ 639,650       -0.7 %   16.3 %   -0.5 %   -8.5 %

    Contra-Costa (Central County)

        $ 765,960     $ 759,870       $ 728,850       0.8 %   5.1 %   -0.5 %   -5.5 %
    Marin     $ 1,060,610     $ 1,033,330       $ 1,000,000       2.6 %   6.1 %   1.6 %   1.6 %
    Napa     $ 556,250     $ 602,940       $ 509,620       -7.7 %   9.1 %   8.9 %   15.1 %
    San Francisco     $ 987,500     $ 963,030       $ 855,180       2.5 %   15.5 %   -10.8 %   -22.9 %
    San Mateo     $ 1,120,000     $ 1,130,000       $ 1,001,000       -0.9 %   11.9 %   4.3 %   -3.3 %
    Santa Clara     $ 900,000     $ 875,580       $ 809,000       2.8 %   11.2 %   -1.8 %   -1.9 %
    Solano     $ 320,640     $ 316,840       $ 278,920       1.2 %   15.0 %   5.5 %   7.8 %
    Sonoma     $ 497,010     $ 490,450       $ 450,000       1.3 %   10.4 %   4.6 %   -0.2 %
    Southern California                                            
    Los Angeles     $ 435,950     $ 411,640       $ 403,760       5.9 %   8.0 %   -8.6 %   -6.1 %
    Orange County     $ 696,680     $ 698,260       $ 661,740       -0.2 %   5.3 %   -1.4 %   -8.5 %
    Riverside County     $ 321,840     $ 323,890       $ 298,470       -0.6 %   7.8 %   2.8 %   0.3 %
    San Bernardino     $ 202,420     $ 214,540       $ 174,650       -5.6 %   15.9 %   2.4 %   -6.8 %
    San Diego     $ 531,350     $ 498,020       $ 483,330       6.7 %   9.9 %   -2.0 %   -10.2 %
    Ventura     $ 571,250     $ 568,360       $ 562,800       0.5 %   1.5 %   6.2 %   -4.9 %
    Central Coast                                            
    Monterey     $ 485,000     $ 445,000       $ 417,000       9.0 %   16.3 %   -15.0 %   -3.6 %
    San Luis Obispo     $ 503,250     $ 487,500       $ 462,500       3.2 %   8.8 %   -9.3 %   -13.8 %
    Santa Barbara     $ 659,480     $ 736,110       $ 671,430       -10.4 %   -1.8 %   6.9 %   9.6 %
    Santa Cruz     $ 699,500     $ 681,500       $ 586,000       2.6 %   19.4 %   8.9 %   -4.2 %
    Central Valley                                            
    Fresno     $ 201,080     $ 199,540       $ 175,820       0.8 %   14.4 %   0.4 %   -7.4 %
    Glenn     $ 175,000     $ 152,500       $ 136,670       14.8 %   28.0 %   72.7 %   11.8 %
    Kern (Bakersfield)     $ 215,000     $ 210,000   r   $ 195,000   r   2.4 %   10.3 %   -2.2 %   0.0 %
    Kings County     $ 194,440     $ 171,670       $ 147,780       13.3 %   31.6 %   1.3 %   -2.5 %
    Madera     $ 206,250     $ 176,670       $ 150,000       16.7 %   37.5 %   23.8 %   -21.2 %
    Merced     $ 158,820     $ 171,430       $ 154,120       -7.4 %   3.0 %   3.3 %   10.7 %
    Placer County     $ 382,970     $ 383,070       $ 370,240       0.0 %   3.4 %   -3.3 %   -11.2 %
    Sacramento     $ 271,630     $ 273,970       $ 247,100       -0.9 %   9.9 %   1.0 %   -1.4 %
    San Benito     $ 420,000     $ 417,500       $ 382,620       0.6 %   9.8 %   -6.3 %   -10.0 %
    San Joaquin     $ 267,020     $ 248,680       $ 208,130       7.4 %   28.3 %   3.2 %   5.0 %
    Stanislaus     $ 233,050     $ 223,870       $ 187,170       4.1 %   24.5 %   3.0 %   -0.2 %
    Tulare     $ 176,520     $ 177,140       $ 158,710       -0.4 %   11.2 %   -0.7 %   4.7 %
    Other Counties in California                                            
    Amador     $ 238,890     $ 242,860       $ 233,330   r   -1.6 %   2.4 %   -13.0 %   -13.0 %
    Butte County     $ 251,250     $ 261,840       $ 265,000       -4.0 %   -5.2 %   -1.5 %   6.5 %
    Calaveras     $ 252,640     $ 247,250       $ 185,000       2.2 %   36.6 %   -4.7 %   3.8 %
    Del Norte     $ 185,580     $ 177,500       $ 132,590       4.6 %   40.0 %   -16.7 %   -52.4 %
    El Dorado County     $ 372,950     $ 374,240       $ 342,250       -0.3 %   9.0 %   0.3 %   -2.3 %
    Humboldt     $ 248,960     $ 254,350       $ 251,090       -2.1 %   -0.8 %   -4.8 %   4.2 %
    Lake County     $ 184,440     $ 170,000       $ 155,000       8.5 %   19.0 %   50.0 %   20.0 %
    Tuolumne     $ 237,500     $ 244,440       $ 180,000       -2.8 %   31.9 %   1.6 %   -17.1 %
    Mendocino     $ 319,230     $ 297,500       $ 242,860       7.3 %   31.4 %   -14.5 %   2.2 %
    Nevada     $ 331,000     $ 290,000       NA       14.1 %   NA     -3.2 %   NA  
    Plumas     $ 230,250     $ 189,000       NA       21.8 %   NA     15.8 %   -45.0 %
    Shasta     $ 226,780     $ 214,020       $ 193,330   r   6.0 %   17.3 %   7.4 %   -7.7 %
    Siskiyou County     $ 163,750     $ 170,000       $ 163,330       -3.7 %   0.3 %   0.0 %   16.2 %
    Sutter     $ 213,500     $ 210,000       NA       1.7 %   NA     1.4 %   NA  
    Tehama     $ 182,500     $ 178,000       $ 140,000       2.5 %   30.4 %   -24.4 %   -22.5 %
    Yolo     $ 377,420     $ 361,630       $ 312,500       4.4 %   20.8 %   -10.6 %   -15.3 %
    Yuba     $ 207,500     $ 195,000       NA       6.4 %   NA     -27.3 %   NA  
     

    r = revised

    NA = not available

     

    June 2014 County Unsold Inventory and Time on Market

    (Regional and condo sales data not seasonally adjusted)

         
    June 2014Unsold Inventory IndexMedian Time on Market
    State/Region/County

    June 2014

       

    May 2014

       

    June 2013

     

    June 2014

       

    May 2014

         

    June 2013

     
    Calif. Single-family (SAAR)     3.7     3.6       2.9       33.9     31.6       27.8    
    Calif. Condo/Townhome     3.3     3.2       2.7       34.5     34.9       27.5    
    Los Angeles Metropolitan Area     4.0     3.9       2.9       44.5     44.1       34.4    
    Inland Empire     4.2     4.3       3.0       45.0     47.5       33.2    
    San Francisco Bay Area     2.4     2.5       2.3       33.3     26.9       34.8    
                                                   
    San Francisco Bay Area                                              
    Alameda     2.3     2.2       1.9       47.9     40.8       49.5    
    Contra-Costa (Central County)     2.3     2.7       2.1       48.7     47.4       50.0    
    Marin     2.4     2.6       2.9       29.1     28.7       33.3    
    Napa     4.3     4.7       5.3       47.5     48.6       47.9    
    San Francisco     3.1     2.6       2.4       20.9     20.3       24.8    
    San Mateo     1.8     2.0       2.0       18.6     18.5       18.5    
    Santa Clara     1.9     1.9       2.0       18.0     18.4       17.8    
    Solano     3.2     3.1       2.7       33.7     34.5       37.6    
    Sonoma     3.1     3.2       3.1       43.0     39.6       44.6    
    Southern California                                              
    Los Angeles     3.8     3.6       2.8       39.7     38.7       28.8    
    Orange County     4.0     3.9       3.0       52.8     49.6       42.5    
    Riverside County     4.1     4.3       2.9       47.5     50.3       34.0    
    San Bernardino     4.5     4.4       3.1       40.4     41.8       31.7    
    San Diego     4.0     3.8       3.2       24.1     24.8       24.1    
    Ventura     3.7     3.9       3.6       47.5     48.2       45.3    
    Central Coast                                              
    Monterey     4.3     3.5       3.9       27.4     26.0       25.3    
    San Luis Obispo     5.5     4.9       3.9       34.3     28.9       24.7    
    Santa Barbara     4.0     4.3       4.5   r   27.4     35.6       29.7    
    Santa Cruz     3.3     3.4       3.3       24.3     22.2       21.6    
    Central Valley                                              
    Fresno     4.5     4.4       3.4       25.7     26.1       24.4    
    Glenn     4.3     7.5       4.0   r   28.0     47.0       44.0    
    Kern (Bakersfield)     3.1     2.7       2.6   r   20.0     20.0       13.0   r
    Kings County     3.5     3.3       3.1       46.8     48.8       44.3    
    Madera     3.9     3.9       2.6       27.9     28.7       33.4    
    Merced     3.6     3.6       2.4       28.7     29.5       26.0    
    Placer County     3.8     3.5       2.4       23.0     22.8       20.0    
    Sacramento     3.2     3.1       2.4       22.3     22.3       18.8    
    San Benito     3.5     2.9       2.2       26.1     23.5       22.3    
    San Joaquin     3.0     3.1       2.6       23.1     23.7       19.4    
    Stanislaus     3.0     2.9       2.3       23.2     21.8       19.7    
    Tulare     3.9     3.8       3.2       33.6     29.8       24.5    
    Other Counties in California                                              
    Amador     5.8     5.0   r   4.1       55.9     61.0       41.2    
    Butte County     4.4     4.1       4.2       31.7     36.7       24.2    
    Calaveras     7.6     7.0       6.1       35.0     56.5       37.0    
    Del Norte     18.7     14.5       8.5   r   148.0     106.5       133.0    
    El Dorado County     5.0     4.8       4.0       35.1     26.5       26.6   r
    Humboldt     6.4     5.8       5.6       28.1     36.4       29.7    
    Lake County     5.4     7.9       5.8       57.9     84.2       56.4    
    Tuolumne     8.2     7.9       5.7       43.8     52.8       45.5    
    Mendocino     8.0     7.0       8.5       53.8     52.3       84.2    
    Nevada     7.0     6.5       NA       28.0     28.0       NA    
    Plumas     22.2     23.8       NA       152.0     99.0       NA    
    Shasta     6.0     6.4       3.4   r   29.3     28.7       24.8   r
    Siskiyou County     9.7     9.4       11.8       47.3     47.7       57.6    
    Sutter     3.4     3.5       NA       14.0     18.0       NA    
    Tehama     7.7     6.0       5.0       52.8     43.4       41.9    
    Yolo     3.0     2.7       2.1       21.3     23.4       18.6    
    Yuba     4.1     3.1       NA       9.0     26.0       NA    
     
    r = revised
    NA = not available





    CALIFORNIA ASSOCIATION OF REALTORS®

    Lotus Lou, (213) 739-8304

    lotusl@car.org


    Source: CALIFORNIA ASSOCIATION OF REALTORS


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