Archive for 'California Real Estate'

California House

The California Association of Realtors recently released a detailed report with regard to the sales activity in the California market and one set of numbers show that a common problem still exists and that problem is that there are less homes for sale this year as compared to last year. The good news is that prices are still rising and appreciation is alive and well.

 

California’s housing market eased into the fall home buying season as seasonally adjusted sales rose both month-to-month and year-to-year in September, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.  

Closed escrow sales of existing, single-family detached homes in California remained above the 400,000 benchmark for the past 18 months and totaled a seasonally adjusted annualized rate of 436,920 units in September, 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 2017 if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The September sales figure was up 2.2 percent from the 427,630 level in August and up 1.7 percent compared with home sales in September 2016 of a revised 429,760. While year-to-date sales are running 2.6 percent ahead of last year’s pace, that margin has been eroding since the first quarter.

“While it’s encouraging that statewide home sales improved both monthly and annually, the year-over-year sales rate is losing steam, reflecting the persistent shortage of homes for sale and an easing of concern over a surge in mortgage rates,” said C.A.R. President Geoff McIntosh. “Additionally, for the areas that have been affected by the recent wildfires, we anticipate sales will pull back in those regions as damages are assessed and replacement efforts are coordinated.”

After reaching its highest level in a decade in August, the statewide median price slipped in September but remained above the $500,000 mark for the seventh straight month. The $565,330 August median price dropped 1.8 percent to $555,410 in September but climbed 7.5 percent from the revised $516,450 recorded in September 2016. 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 statewide median price rose at the fastest annual pace since February 2017 as the housing supply shortage continued to dictate the market, taking a toll on home sales and affordability,” said C.A.R. Senior Vice President and Chief Economist Leslie-Appleton-Young. “The tight inventory situation is particularly acute in the Bay Area region, which saw double-digit price increases in Alameda, Contra Costa, San Francisco, and Santa Clara counties, while sales fell markedly from the previous year in six of the nine Bay Area counties.”

Other key points from C.A.R.’s September 2017 resale housing report include:

  • All of the major regions experienced month-to-month and annual sales declines, with sales in the San Francisco Bay Area declining 4.2 percent from a year ago, the Inland Empire falling 4.0 percent, and the Los Angeles metro region decreasing 2.5 percent from September 2016.
  • In general, home prices across the state continued to grow in September. Forty-one of the 51 reported counties recorded a year-over-year price increase, with 20 of them growing at double-digit rates.
  • Statewide active listings continued to decline in September, dropping 11.2 percent from a year ago. Since the beginning of the year, active listings have declined by more than 10 percent every month, and the number of available listings for sale has trended downward for more than two years.
  • With strong sales growth and little new inventory to replenish the housing supply, C.A.R.’s Unsold Inventory Index fell from 3.5 months in September 2016 to 3.2 months in September 2017. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate. The index stood at 2.9 months in August.
  • Thirty-six of 51 counties experienced a decline in housing inventory from last year. While every single county in the Southern California region had a reduction in the unsold inventory index from the previous year in September, the Bay Area remained the region with the tightest housing supply. Six of the nine Bay Area counties had less than three months of inventory in September, and of the six, two had less than a two months’ supply.
  • The median number of days it took to sell a single-family home in September was 20 days compared with 18 days in August and 28 days in September 2016.
  • C.A.R.’s sales price-to-list price ratio* was 99.1 percent statewide in September, 99.5 percent in August, and 98.6 percent in September 2016. At the county level, San Francisco had the highest ratio at 116.6 percent and Mariposa had the lowest at 92.5 percent.
  • The average price per square foot** for an existing, single-family home statewide was $270 in September, $268 in August, and $254 in September 2016.
  • San Mateo had the highest price per square foot in September at $883/sq. ft., followed by San Francisco ($875/sq. ft.), and Santa Clara ($687/sq. ft.). Counties with the lowest price per square foot in September included Lassen ($118/sq. ft.), Kings ($132/sq. ft.), and Kern ($136/sq. ft.).
  • Mortgage rates declined further in September as 30-year, fixed-mortgage interest rates averaged 3.81 percent in September, down from 3.88 percent in August but was up from 3.46 percent in September 2016, according to Freddie Mac. The five-year, adjustable-rate mortgage interest rate edged up in September to an average of 3.16 percent from 3.15 percent in August but was up from 2.74 percent in September 2016.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold.  The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage.  A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property.  It is calculated as the sale price of the home divided by the number of finished square feet.  C.A.R. currently tracks price-per-square foot statistics for 39 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

SOURCE CALIFORNIA ASSOCIATION OF REALTORS

CONTACT: Lotus Lou, (213) 739-8304, lotusl@car.org

RELATED LINKS
http://www.car.org

 

 

The report is in for the month of June and the results for home sales in California are showing positive once again according to the CALIFORNIA ASSOCIATION OF REALTORS®. Pending home sales were up again over 12 percent as compared to June  2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances. A breakdown of distressed sales by County is in the chart below.

LOS ANGELES, July 23, 2015 /PRNewswire-USNewswire/ — California pending home sales continued to gain steam in June, registering seven months of continued annual increases and the fifth consecutive month of double-digit increases, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

In a separate report, California REALTORS® responding to C.A.R.’s June Market Pulse Survey saw a reduction in floor calls, listing appointments, and open house traffic, compared with May. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Pending home sales data:

  • California pending home sales were up 12.5 percent on an annual basis from the revised 107 index recorded in June 2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances.
  • Statewide pending home sales fell in June on a month-to-month basis, with the Pending Home Sales Index (PHSI)* decreasing 2.6 percent from a revised 123.6 in May to 120.4, based on signed contracts.  The month-to-month decrease was slightly below the average May-June loss of 1.9 percent observed in the last seven years.
  • A shortage of available homes in the San Francisco Bay Area stifled pending sales in June, pushing the PHSI to 127.9, down 5.3 percent from 135.1 in May and down 0.9 percent from the 129.1 index recorded in June 2014.
  • Pending home sales in Southern California continued last month’s increase by rising 4 percent in June to reach an index of 109.6, up 14.2 percent from the June 2014 index of 96.
  • Central Valley pending sales fell in June, dropping 8.2 percent from May to reach an index of 99.5 in June but up 14.2 percent from the 87.2 index of June 2014.

Equity and distressed housing market data:

  • The share of equity sales – or non-distressed property sales – declined slightly in June to make up 92.4 percent of all home sales, remaining near the highest level since late 2007. Equity sales made up 92.6 percent of all home sales in May and 89.9 percent in June 2014. The share of equity sales has been at or near 90 percent since mid-2014.
  • Conversely, the combined share of all distressed property sales (REOs and short sales) rose slightly in June, up to 7.6 percent from 7.4 percent in May. Distressed sales made up 10.1 percent of total sales a year ago. Ten of the 43 counties that C.A.R. reported showed month-to-month decreases in their distressed sales shares, with Alameda and Santa Clara having the smallest share of distressed sales at 1 percent, followed by San Mateo (2 percent), Contra Costa (3 percent), and San Francisco (3 percent). Glenn had the highest share of distressed sales at 27 percent, followed by Merced and Siskiyou (both at 23 percent).

June REALTOR® Market Pulse Survey**:

  • Reversing last month’s decrease, the share of sales closing below asking price increased to 43 percent in June, up from 40 percent in May, but down from the highest point of 55 percent in January 2015.  More than a third of homes (33 percent) closed over asking price, and 24 percent closed at asking price.
  • For the one in three homes that sold over asking price, the premium paid over asking price increased in June, suggesting increased market competition among home buyers in some local markets. In June, homes that sold above asking price sold for an average of 11 percent above asking price, up from 8 percent in May and 7.3 percent in June 2014.
  • The 43 percent of homes that sold below asking price sold for an average of 11 percent below asking price in June, up from 7 percent in May.
  • The share of properties receiving multiple offers was unchanged at 65 percent in June but down slightly from 66 percent in June 2014.
  • The average number of offers per property increased slightly to 2.9 from 2.8 in May and 2.7 in June 2014.
  • REALTOR® respondents reported that floor calls, listing appointments, and open house traffic all declined in June, compared with the previous month.
  • While the majority of REALTORS® (83 percent) expect better or similar market conditions over the next year, the percentage of REALTORS® who are optimistic about conditions over the coming year has been on the decline for the past six months from 62 percent in January to 44 percent in June.

Share of Distressed Sales to Total Sales
(Single-family)

Type of Sale

Jun-15

May-15

Jun-14

Equity Sales

92.4%

92.6%

89.9%

Total Distressed Sales

7.6%

7.4%

10.1%

     REOs

3.5%

3.6%

4.4%

     Short Sales

3.7%

3.4%

5.4%

     Other Distressed Sales (Not Specified) 

0.4%

0.4%

0.3%

All Sales 

100.0%

100.0%

100.0%

Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

County

Jun-15

May-15

Jun-14

Alameda

1%

3%

4%

Amador

8%

9%

23%

Butte

9%

5%

8%

Calaveras

6%

10%

16%

Contra Costa

3%

2%

4%

El Dorado

8%

5%

12%

Fresno

10%

11%

17%

Glenn

27%

0%

21%

Humboldt

16%

14%

8%

Kern

9%

8%

11%

Kings

11%

13%

25%

Lake

18%

15%

23%

Los Angeles

8%

7%

10%

Madera

9%

5%

9%

Marin

4%

2%

3%

Mariposa

20%

18%

40%

Mendocino

20%

16%

10%

Merced

23%

16%

16%

Monterey

8%

7%

13%

Napa

12%

4%

6%

Orange

4%

4%

6%

Placer

5%

6%

7%

Plumas

20%

16%

18%

Riverside

10%

10%

13%

Sacramento

11%

10%

13%

San Benito

8%

6%

7%

San Bernardino

12%

10%

17%

San Diego

4%

5%

6%

San Francisco

3%

3%

3%

San Joaquin

12%

10%

14%

San Luis Obispo

4%

6%

5%

San Mateo

2%

1%

3%

Santa Clara

1%

1%

2%

Santa Cruz

4%

4%

7%

Shasta

8%

13%

14%

Siskiyou

23%

17%

19%

Solano

21%

9%

13%

Sonoma

9%

3%

6%

Stanislaus

11%

8%

12%

Sutter

12%

13%

8%

Tulare

14%

14%

21%

Yolo

5%

2%

12%

Yuba

18%

16%

9%

CALIFORNIA

8%

7%

10%

*Note:  C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state.  Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market.  A sale is listed as pending after a seller has accepted a sales contract on a property.  The majority of pending home sales usually becomes closed sales transactions one to two months later.  The year 2008 was used as the benchmark for the Pending Homes Sales Index.  An index of 100 is equal to the average level of contract activity during 2008.

**C.A.R.’s Market Pulse Survey is a monthly online survey of more than 300 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Leading the way…® in California real estate for 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

SOURCE CALIFORNIA ASSOCIATION OF REALTORS

CONTACT: Mary Belongia, (213) 739-8363, maryb@car.org

RELATED LINKS
http://www.car.org