June 2015 sales and price report…

June 2015 sales and price repor…

California home sales reach highest level in two years, experience first double-digit increase since May 2012, C.A.R. reports

  • Existing, single-family home sales totaled 437,040 in June on a seasonally adjusted annualized rate, up 3.3 percent from May and 11 percent from June 2014.
  • Statewide sales were above 400,000 mark for third straight month.
  • June statewide median home price was $489,560, up 0.8 percent from May and 7 percent from June 2014.
  • California’s median home price was the highest since November 2007.
  • Available housing supply remained constrained with 3.3 months of inventory.

LOS ANGELES (July 15) – Sales of existing, single-family homes in June reached the highest level in two years and experienced the first double-digit increase since May 2012, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. Home sales in the state have risen year over year for five straight months.

Home sales remained above the 400,000 mark in June for the third consecutive month and rose to highest level since July 2013. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 437,040 units in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the June pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The June figure increased 3.3 percent from the revised 423,000 level in May and 11 percent compared with home sales in June 2014 of 393,820. The year-to-year change is significantly higher than the previous 6-month average increase of 4.3 percent observed from December 2014-May 2015.

“Home prices continue to improve but at a more moderate rate compared with the previous year,” said C.A.R. President Chris Kutzkey. “However, in areas such as the San Francisco Bay Area where tight inventory is fueling stiff competition and generating multiple offers, home prices are still rising at or near double-digit rates, and creating a challenging environment for potential buyers in the region. “

The median price of an existing, single-family detached California home edged up in June from both the previous month and year for the fifth consecutive month. The median home price was up 0.8 percent from $485,830 in May to $489,560 in June, the highest level since November 2007. June’s median price was 7 percent higher than the revised $457,700 recorded in June 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“The housing market remained solid in June as the economy continued to pick up steam following a lackluster first quarter,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Overall, market fundamentals appear strong, and should provide some support for the market to stay above last year’s level in the upcoming quarter.  Housing supply, however, is one variable that remains a concern and could have an adverse effect on the market if the inventory constraints do not improve.”