Home sales moderated in California in December but the year ended with a further rise for home prices
Home sales moderated in California in December but the year ended with a further rise for home prices.
There were 420,960 closed escrow single-family home sales statewide in the month, down 4.4% from November but up 1.4% year-over-year, according to data from the California Association of Realtors.
While sales moderated as the tight inventory limited buyer options, the median price continued rising to $549,560, up 0.5% from November and 7.6% higher than the revised $510,560 recorded in December 2016.
“A severe shortage of homes for sale continues to push up home prices and erode affordability, which in turn is subduing home sales,” said C.A.R. President Steve White. “What’s more, with the passage of the tax reform bill that makes homebuying less attractive, homeownership costs will increase for many, which could reduce the desire and demand for buying a home.”
Strong but uneven year
The December figures ended a year which started with a strong Q1 before moderating during the remaining 9 months.
A preliminary 423,760 homes closed escrow in 2017, up 1.4% from 2016’s pace of 417,720. The median price gained 6.9% for the year as a whole to reach $537,860.
“Looking ahead, the market will remain solid but both sales and prices will be impacted by inventory shortages, impending interest rate hikes, and general economic factors including the effects of tax reform,” said C.A.R. Senior Vice President and Chief Economist Leslie-Appleton-Young.
There were 420,960 closed escrow single-family home sales statewide in the month, down 4.4% from November but up 1.4% year-over-year, according to data from the California Association of Realtors.
While sales moderated as the tight inventory limited buyer options, the median price continued rising to $549,560, up 0.5% from November and 7.6% higher than the revised $510,560 recorded in December 2016.
“A severe shortage of homes for sale continues to push up home prices and erode affordability, which in turn is subduing home sales,” said C.A.R. President Steve White. “What’s more, with the passage of the tax reform bill that makes homebuying less attractive, homeownership costs will increase for many, which could reduce the desire and demand for buying a home.”
Strong but uneven year
The December figures ended a year which started with a strong Q1 before moderating during the remaining 9 months.
A preliminary 423,760 homes closed escrow in 2017, up 1.4% from 2016’s pace of 417,720. The median price gained 6.9% for the year as a whole to reach $537,860.
“Looking ahead, the market will remain solid but both sales and prices will be impacted by inventory shortages, impending interest rate hikes, and general economic factors including the effects of tax reform,” said C.A.R. Senior Vice President and Chief Economist Leslie-Appleton-Young.
