Home sales in California remain under pressure from tight inventory which is exacerbating affordability as prices rise
Home sales in California remain under pressure from tight inventory which is exacerbating affordability as prices rise.
October sales saw a rise in single-family sales from September to a seasonally adjusted annualized rate of 431,020 units, up 0.8% month-over-month but down 3.4% year-over-year.
While year-to-date sales are up 1.7% from last year, they appear to be losing steam.
"As we enter the fall homebuying season, we're seeing signs of the market slowing as eroding affordability and persistently low housing inventory cut into home sales," said 2018 C.A.R. President Steve White. "Moreover, the looming tax reform bill that eliminates important incentives that help first-time homebuyers and existing homeowners will only further adversely impact the housing market."
For the second straight month, the median statewide home price was lower in October at $546,430. That’s down 1.6% from September but will do little to improve affordability as it’s 6.1% above the same month of 2016.
"While October's year-to-year price gain was the lowest in five months, we're still seeing solid price increases, especially in the San Francisco Bay Area. In fact, 20 of the tracked counties recorded strong double-digit, annual price gains," said C.A.R. Senior Vice President and Chief Economist Leslie-Appleton-Young.
He added that home sales are expected to soften year-over-year in the upcoming months, primarily because of the high sales levels posted in October and November of 2016.
October sales saw a rise in single-family sales from September to a seasonally adjusted annualized rate of 431,020 units, up 0.8% month-over-month but down 3.4% year-over-year.
While year-to-date sales are up 1.7% from last year, they appear to be losing steam.
"As we enter the fall homebuying season, we're seeing signs of the market slowing as eroding affordability and persistently low housing inventory cut into home sales," said 2018 C.A.R. President Steve White. "Moreover, the looming tax reform bill that eliminates important incentives that help first-time homebuyers and existing homeowners will only further adversely impact the housing market."
For the second straight month, the median statewide home price was lower in October at $546,430. That’s down 1.6% from September but will do little to improve affordability as it’s 6.1% above the same month of 2016.
"While October's year-to-year price gain was the lowest in five months, we're still seeing solid price increases, especially in the San Francisco Bay Area. In fact, 20 of the tracked counties recorded strong double-digit, annual price gains," said C.A.R. Senior Vice President and Chief Economist Leslie-Appleton-Young.
He added that home sales are expected to soften year-over-year in the upcoming months, primarily because of the high sales levels posted in October and November of 2016.
