The statewide median home price in California hit a new high in May, the first time in more than 10 years that a new record has been reached.
The $600,860 median is up 2.8% from April and 9.2% from May 2017.
California Association of Realtors reports that home sales in the month decreased by 1.8% month-over-month in May to 409,270 units. The year-over-year decline was 4.6%.
"The softening in May home sales was due in part to the spike in interest rates in mid-April, when the 30-year fixed mortgage rate jumped 20 basis points in just one week to reach the highest level since 2014," said C.A.R. President Steve White.
He added that rising rates may have delayed some buyers’ escrow closings while others may have bought earlier in the year than usual due to expected rate rises, meaning lower sales in the spring.
“Looking ahead, higher mortgage rates and elevated home prices will heighten affordability constraints that will likely temper the housing market in the coming months," added White.
Active listings improved for the second consecutive month, increasing 8.3% year-over-year, the largest annual gain since January 2015 (11.0%).
Statewide inventory was up slightly to 3 months (from 2.9 months a year earlier).
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