Sustained job and income growth gave home buyers the confidence in July to jump into the California housing market, pushing home sales to their highest level in nearly three years, according to a report released today by the California Association of REALTORS® (C.A.R.). Home sales have risen year-over-year for six straight months.
According to C.A.R.’s newest housing market indicator, which measures the sales-to-list price ratio*, properties are again generally selling below the list price, except in the San Francisco Bay Area, where a lack of homes for sale is pushing sales prices higher than original asking prices. The statewide measure suggests that homes are selling at a median of 98.8 percent of the list price, slightly up from 98.5 percent at the same time last year. The Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 105.2 percent, up from 103.4 percent a year ago, but down from 106.3 percent in June.
- Existing, single-family home sales totaled 449,530 in July on a seasonally adjusted annualized rate, up 2.7 percent from June and 12.7 percent from July 2014
- Statewide sales were above the 400,000 mark for the fourth straight month
- July statewide median home price was $488,260, down 0.3 percent from June but up 5.4 percent from July 2014
- Available housing supply remains constrained at 3.3 months of inventory
- The median number of days it took to sell a single-family home rose slightly in July to 35.1 days compared with 33.4 days in June but was down slightly from 35.9 days in July 2014
Read the full report here.
Source: California Association of REALTORS®
*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.