There was a 0.6% drop in home sales in California last month compared to a year earlier but up 2.1% from October
There was a 0.6% drop in home sales in California last month compared to a year earlier but up 2.1% from October.
California Association of Realtors members reported a seasonally adjusted annualized rate of 440,340 units in November and while the figure was down from the 443,960 sales of November 2016, that had been an unseasonably strong month.
“The state’s housing market performed better than we anticipated in November, despite a slowdown in sales activity in the second half of the year,” said 2018 C.A.R. President Steve White. “While high-priced markets have performed well in recent months, sales remain lackluster in the lower-priced segments as the supply of affordable homes continues to shrink. This tale of two markets is not a story that we enjoy telling as the dichotomy in the market is posing some affordability challenges to many potential homebuyers who want to enter the market.”
The LA metro and Inland Empire saw declines of 3.5% and 6.5% respectively in November compared to a year earlier. San Francisco gained 0.7% despite continuing challenges of affordability and low supply.
California’s median home price was essentially flat statewide in November at $546,820, up just 0.1% from October but 8.8% above November 2016.
“The statewide median home price increased year-over-year at the highest rate in nearly two years, which was faster than what we anticipated earlier in the year,” said C.A.R. Senior Vice President and Chief Economist Leslie-Appleton-Young. “With the Federal Reserve hiking its benchmark interest rate last week, we expect more rate increases next year as the Fed attempts to keep inflation in check. As rates rise, the cost of homeownership will go up, and housing affordability will further deteriorate if the trend continues.”
California Association of Realtors members reported a seasonally adjusted annualized rate of 440,340 units in November and while the figure was down from the 443,960 sales of November 2016, that had been an unseasonably strong month.
“The state’s housing market performed better than we anticipated in November, despite a slowdown in sales activity in the second half of the year,” said 2018 C.A.R. President Steve White. “While high-priced markets have performed well in recent months, sales remain lackluster in the lower-priced segments as the supply of affordable homes continues to shrink. This tale of two markets is not a story that we enjoy telling as the dichotomy in the market is posing some affordability challenges to many potential homebuyers who want to enter the market.”
The LA metro and Inland Empire saw declines of 3.5% and 6.5% respectively in November compared to a year earlier. San Francisco gained 0.7% despite continuing challenges of affordability and low supply.
California’s median home price was essentially flat statewide in November at $546,820, up just 0.1% from October but 8.8% above November 2016.
“The statewide median home price increased year-over-year at the highest rate in nearly two years, which was faster than what we anticipated earlier in the year,” said C.A.R. Senior Vice President and Chief Economist Leslie-Appleton-Young. “With the Federal Reserve hiking its benchmark interest rate last week, we expect more rate increases next year as the Fed attempts to keep inflation in check. As rates rise, the cost of homeownership will go up, and housing affordability will further deteriorate if the trend continues.”
