Home sales in California remained above the 400,000 mark in August for the fifth consecutive month and rose to the highest level since October 2012, according to a recent report from the California Association of Realtors, CAR. The median price of an existing, single-family detached home in California edged up 1% in August to $493,420 from $488,470 in July. Sales of condos and townhomes were up nearly 10% from last year and are ahead 6.6% year to date.
“While California housing indicators remain strong for now, the anticipation of higher mortgage rates and reduced affordability, coupled with global instability and stock market volatility may create an environment of uncertainty that could impact the current momentum in the market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.
In other housing news, the National Association of Realtors (NAR) reported that total existing home sales fell 4.8% to a seasonally adjusted annual rate of 5.31 million units in August from 5.58 million in July. The percent of first-time buyers rebounded to 32% in August, up from 28% in July and matching the highest share of the year set in May. Sales in the West dropped 7.8% to an annual rate of 1.19 million, (7.2% above a year ago,) and the median price in the West was $321,300, up 7.1% over 12 months.
Lawrence Yun, NAR chief economist, says home sales in August lost some momentum to close out the summer. “Sales activity was down in many parts of the country last month—especially in the South and West—as the persistent summer theme of tight inventory levels likely deterred some buyers,” he said. “The good news for the housing market is that price appreciation the last two months has started to moderate from the unhealthier rate of growth seen earlier this year.”
What’s happening in the local housing market? Check out the chart below to see the median sales prices for single-family homes in the Beach Cities and Palos Verdes Peninsula over the last four years and see page 102 for a more in-depth look at current active / closed sales date for the entire South Bay in 2015.