Sales remained above the benchmark for the 17th straight month, while the median price grew to a decade high
Sales of existing homes and the median home price in California posted increases in August on monthly and annual bases, according to new data from the California Association of Realtors.
California recorded a total of 427,640 units of closed escrow sales of existing, single-family detached home on a seasonally adjusted basis, while the statewide median price reached $565,330.
The sales figure represents the 17th month in a row in which California remained above the 400,000 benchmark. The August total is an increase of 1.5% from the rate of 421,460 in July and rose 1.3% compared to the 422,190 revised home sales for August 2016. Although the year-to-date sales pace has slowed since the first quarter, it remains 2.7% ahead of the 2016 pace.
The increase in the statewide median price drove it to its highest level in a decade. August was the sixth consecutive month in which the median price remained above the $500,000 mark. It marks a 2.9% increase from the $549,460 median in July and a 7.2% gain from the $527,490 revised median posted in the year-ago period.
"While August's strong housing market performance is encouraging, it's really a tale of two markets. Despite sales growth across all segments of the market, lower-priced homes are particularly inventory constrained, which leads to weaker sales growth, faster-rising prices, and fierce competition for the few homes that are listed," CAR President Geoff McIntosh said. "These homes are selling faster than historically and for top dollar, adversely impacting entry-level buyers who are already struggling to afford to buy their very first home."
"A shortage of available homes for sale continues to stoke robust growth in home prices," CAR Senior Vice President and Chief Economist Leslie Appleton-Young said. "August marked the third straight month that the median price gained 7% or more year-over-year, indicating that prices are not only growing, but are accelerating into the end of the year. For the most inventory-constrained segment of the market – the bottom 20 percentile – home prices rose even higher with a double-digit gain (10.7%)."
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California lawmakers to tackle housing package
California housing market remains solid with sales, price gains
California recorded a total of 427,640 units of closed escrow sales of existing, single-family detached home on a seasonally adjusted basis, while the statewide median price reached $565,330.
The sales figure represents the 17th month in a row in which California remained above the 400,000 benchmark. The August total is an increase of 1.5% from the rate of 421,460 in July and rose 1.3% compared to the 422,190 revised home sales for August 2016. Although the year-to-date sales pace has slowed since the first quarter, it remains 2.7% ahead of the 2016 pace.
The increase in the statewide median price drove it to its highest level in a decade. August was the sixth consecutive month in which the median price remained above the $500,000 mark. It marks a 2.9% increase from the $549,460 median in July and a 7.2% gain from the $527,490 revised median posted in the year-ago period.
"While August's strong housing market performance is encouraging, it's really a tale of two markets. Despite sales growth across all segments of the market, lower-priced homes are particularly inventory constrained, which leads to weaker sales growth, faster-rising prices, and fierce competition for the few homes that are listed," CAR President Geoff McIntosh said. "These homes are selling faster than historically and for top dollar, adversely impacting entry-level buyers who are already struggling to afford to buy their very first home."
"A shortage of available homes for sale continues to stoke robust growth in home prices," CAR Senior Vice President and Chief Economist Leslie Appleton-Young said. "August marked the third straight month that the median price gained 7% or more year-over-year, indicating that prices are not only growing, but are accelerating into the end of the year. For the most inventory-constrained segment of the market – the bottom 20 percentile – home prices rose even higher with a double-digit gain (10.7%)."
Related stories:
California lawmakers to tackle housing package
California housing market remains solid with sales, price gains
