California home sales softened in May, but the spring home buying season marked year-over-year home sales and prices for the straight fourth month, according to the California Association of REALTORS® (C.A.R.).Home sales rose above the 400,000 mark in May for the second straight month since October 2013 and were the second highest level in nearly two years.
According to the state REALTOR® group, existing, single-family home sales totaled 423,360 in May, down 1.1 percent from April. The statewide sales figure was up 8.9 percent from May a year ago.
The median price of an existing, single-family detached California home edged up in May from both the previous month and year for the fourth consecutive month. The median home price was up 0.8 percent from $481,880 in April to $485,830 in May, the highest level since November 2007. May's median price was 4.4 percent higher than the revised $465,470 recorded in May 2014.
The reports indicates available statewide housing supply remains constrained with 3.5 months of inventory. Santa Clara County had 1.8 months of inventory in May, while San Mateo County had 1.7 months of inventory. A six- to seven-month supply is considered typical in a normal market.
C.A.R.'s housing market indicator finds properties are generally selling below the list price, except in the San Francisco Bay Area. Homes are selling at a median of 99 percent of the list price, essentially flat compared to a ratio of 98.8 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 107.3 percent, up from 104.9 percent a year ago.
"The lack of homes for sale is pushing sales prices higher than original asking prices," said Chris Isaacson, president of the Silicon Valley Association of REALTORS®.
Price per square foot at the state level has been on an upward trend since early 2012, and has been rising on a year-over-year basis for 40 consecutive months. In recent months, however, the growth rate in price per square foot has slowed down as home prices level off. The average California price per square foot for an existing single-family home was $226 in May 2015, a decrease of 0.4 percent from the previous month but a 3.2 percent increase from May 2014. San Francisco County had the highest price per square foot in May at $818/sq. ft., followed by San Mateo ($775/sq. ft.), and Santa Clara ($591/sq. ft.).
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.