August is flying by and fall will be here before we know it! Before the holidays get underway, we decided it was time for a Golden State ‘State of the Market.’ The latest California housing market data accounts for home sales, prices and inventory in July 2019, and we have a feeling that some of the stats just may surprise you!
Did you know that:
| Single-family homes ales reached their highest levels since April 2018, marking the first YEARLY gain in 15 months. (Home sales are down year-to-date 4.9% which is a not a surprising seasonal swing with end of summer and back to school upon us. Note that monthly, quarterly and annual sales figures vary greatly which is why we encourage people not to panic when numbers rise or drop in a short time. Markets are very fluid…)
| Pending sales surged to their highest levels in 2 years… that August report could be a game-changer!
| Home price gains are still occurring! Year-to-year, state median home prices have risen 2.8% to a $607,000. Furthermore, sales are up at all price points except the lowest (less than $299,000) and highest ($2,000,000) ranges of the market. Sales price-to-list ratio dipped just slightly to 99% (a 0.2% decrease month over month), once again a normal trend at end of peak season.
| With rates maximizing purchasing power and/or decreasing payment size, mortgage payments have hit their lowest levels in 33 months!
| As sales have increased, the overall inventory has dropped a bit to 3.2 months, from 3.3 months this same time last year. Supply has notably improved in homes listed in the $750K-999K range (+4.5%) and decreased significantly for homes priced $300K-499K (-7.8%) and less than $299K (-14.8%).
| Regionally, Bay Area inventory levels have decreased to 2.5 months. Remember, 5-6 months is a ‘balanced’ market.
| The state is seeing more price reductions, with 39.6% of listings seeing a median reduction amount of 4.2%.
So… what so you think?! Were you surprised that home sales are setting a 15-month record? Excited to see home price gains approaching normalcy? Wondering how all of this data impacts your short and long-term goals? Please do not hesitate to reach out with any questions, any time!
For the complete California Housing Market Update, please see the report in full from the California Association of Realtors (CAR®). Thank you CAR®!
All my best,
Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/