California home sales and prices start year lower
California’s housing market started the new year still bearing the scars of 2014’s tight housing inventory and low housing affordability as statewide home sales fell from the previous month and year, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
- Sales in January were down 3.9 percent from a revised 366,130 in December and down 2.7
percent from a revised 361,790 in January 2014. Home sales have been below the 400,000 level since November 2013.
- C.A.R. President Chris Kutzkey commented, “Despite a leveling off of home prices and
continued decline in interest rates in recent months, California’s housing market continues to be
constrained by low housing affordability, particularly in the San Francisco Bay Area.”
The median price of an existing, single-family detached California home fell 5.9 percent from December’s median price of $453,780 to $426,790 in January but was up 3.4 percent from the revised $412,820 recorded in January 2014.
- The statewide median home price has been higher on a year-over-year basis for more than two years, but price gains have narrowed significantly in the past year.
- C.A.R. Vice President and Chief Economist Leslie Appleton-Young stated, “While the statewide unsold inventory index in January jumped to the highest level in nearly three years, the increase can be attributed in large part due to the drop in sales. Overall, active listings statewide showed a near double-digit increase from last January, but supply conditions weren’t all positive at the regional level.”
- Housing inventory loosened throughout much of the state in January, though the San Francisco Bay area continued to be hamstrung by tight inventory. The available supply of existing, single-family detached homes for sale statewide rose from 3.3 months in December to 5 months in January.
- The median number of days it took to sell a single-family home was extended in January, up from a revised 47.5 days in December to 52.4 days in January and from 44.3 days in January 2014.
Source: C.A.R. Read the full story here.