California Monthly Housing Update - August, 2018

 Data & Presentation provided by CAR

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Summary:

  • The Southern California region led the state’s sales decline, falling 8.0 percent from a year ago. San Diego experienced a double-digit decline of 10.4 percent, while Orange and Los Angeles counties posted smaller declines of 9.7 percent and 8.9 percent, respectively.
  • Home prices in Southern California rose even as sales faltered. Home prices continuing to rise modestly suggests that demand has not eroded completely, rather it has eased slightly. In fact, every county in the region recorded price growth from a year ago.
  • Statewide active listings rose for the 5th consecutive month after 33 straight months of declines, increasing 17.2 percent from the previous year. August’s listings increase was the biggest in nearly four years. 
  • The median number of days it took to sell a California single-family home ticked up from 18 days in August 2017 to 21 days in August 2018.
  • The average statewide price per square foot for an existing, single-family home statewide was $283 in August, up from $268 in August 2017.
  • The 30-year, fixed-mortgage interest rates averaged 4.55 percent in August, up from 3.88 percent in August 2017, according to Freddie Mac. The five-year, adjustable mortgage interest rate also increased in August to an average of 3.87 percent from 3.15 from August 2017. 
 
 In a nutshell, we are seeing a surge in active housing supply, an increasing number of price reductions in the market, and growth in homes selling below list price, and as such, the question remains, how long will it take for the market to close the price expectation gap between buyers and sellers? For now, buyers who can afford to buy a home can leverage current market conditions in some markets, while sellers can still yield historically high sales prices even if they have to experience a price reduction.

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Disclaimer: This article is provided for informational purposes and should not be relied upon as legal advice. Please contact your Real Estate agent or attorney for any legal advice. If you would like to work with a Skyworks Real Estate agent, please contact us directly.