California home sales in July climbed to their highest level in nearly three years, according to the latest California Association of REALTORS® report. Home sales have risen year over year for six straight months.
Home sales remained above the 400,000 mark in July for the fourth consecutive month and rose to highest level since October 2012. Closed escrow sales of existing, single-family detached homes in California totaled 449,530 units in July, according to information collected by the state Realtor group from more than 90 local REALTOR®® associations and MLSs statewide.
The July figure was up 2.7 percent from June and 12.7 percent from July 2014. The year-to-year change was the highest since July 2009 and significantly higher than the 6-month average increase of 6 percent observed from January 2015-June 2015.
"While July home sales rose at the statewide level, the market is still constrained by low housing affordability and a tight supply in areas where job growth is robust, such as San Francisco and San Jose," said California Association of REALTORS®® president Chris Kutzkey. "Neighboring regions such as Napa, Solano, and Sonoma are experiencing strong sales due to their affordability and proximity to job centers. However, housing affordability could become a bigger issue in these areas if housing demand continues to grow but supply can't keep pace."
The median price of an existing, single-family detached California home dipped 0.3 percent in July to $488,260 from $489,640 in June. July's median price was 5.4 percent higher than $463,330 recorded in July 2014.
Silicon Valley's housing market continued to be robust in July, though there are signs of softening in some areas. July home sales in Santa Clara County dipped 2.5 percent from June and were 5.3 percent above July home sales last year. The July median sales price of a single-family home was $965,000, up 12.1 percent from the July 2014 median, but 2.5 percent lower than the June median of $990,000.
"Sustained job and income growth is fueling our housing market and the tight inventory is causing home prices to rise. The slight dip in month-over-month sales and median price could indicate home prices have hit a ceiling or buyers taking a pause with the new school year approaching," said Chris Isaacson, president of the Silicon Valley Association of REALTORS®®.
Isaacson said he is doubtful demand will let up. "Silicon Valley's housing supply is severely constrained and has been at under two months all year. A six- to seven-month supply is considered typical in a normal market."
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.
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