Sales were down year-over-year in October
Home sales remain subdued in California as potential buyers wait to see what happens with mortgage rates and what price reductions could be ahead.
Sales have been declining in the state over the past 6 months according to data from California Association of Realtors (CAR).
Closed escrow sales of single-family homes were up 3.8% from a revised September total, to a seasonally-adjusted annualized rate of 397,060 units- down 7.9% from a year earlier.
October was the third month where sales were below 400,000, a run not seen since February 2015.
"Homebuyers continued to put their homeownership plans on hold in October and wait out the market," said 2019 CAR President Jared Martin. "With mortgage rates at seven-year highs making homeownership more expensive and home prices beginning to flatten, this phenomenon will likely continue for the near term as buyers wait for further price adjustments and for interest rates to stabilize."
Prices are easing, active listings jumped
The statewide median home price declined 1.2% month-over-month but was up 4.7% year-over-year in October at $572,000.
"October's sales decline was not as severe as the double-digit drop experienced in September, but the continued pullback in sales suggests the market will continue to slow and likely soften further into 2019," said CAR Senior Vice President and Chief Economist Leslie Appleton-Young. "Likewise, as home sales continue to soften, the median price, which was the lowest since March 2018, will also ease up."
Statewide active listings rose for the seventh consecutive month after nearly three straight years of declines, increasing 28% from the previous year. October's listings increase was the largest in four years.
