California home sales in August were down slightly from July, but remained above the 400,000 mark for the fifth consecutive month, rising to the highest level since October 2012. Home prices are still high, but posted smaller gains in the month of August. This is a good sign that prices may be stabilizing, according to REALTOR® officials.
Closed escrow sales of existing, single-family detached homes in California totaled 431,800 units in August, down 3.8 percent from the revised 448,900 level in July, but up 9.3 percent compared with August 2014 home sales. The year-to-year change was higher than the 6-month average increase of 8.6 percent from February 2015 to July 2015.
"Home prices are finally increasing at a healthier pace, and the smallest year-over-year statewide median price gain in nearly three and a half years suggests that home prices are stabilizing," said Chris Kutzkey, president of the California Association of REALTORS®. "Supply constraints in the Bay Area will continue to fuel appreciation for the rest of the year, but the upward pressure in price will be counterbalanced by sales increases in more affordable areas such as the Central Valley and the Inland Empire."
The median price of an existing, single-family detached California home edged up 1 percent in August to $493,420 from the $488,470 median in July. The August median was 2.5 percent higher than the revised $481,240 recorded in August last year.
"While California housing indicators remain strong for now, the anticipation of higher mortgage rates and reduced affordability, coupled with global instability and stock market volatility may create an environment of uncertainty that could impact the current momentum in the market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.
According to the state Realtor group, properties are again generally selling below the list price, except in the San Francisco Bay Area. San Francisco had the highest price per square foot in August with $770/sq. ft., followed by San Mateo ($764/sq. ft), and Santa Clara ($592/sq. ft.).
Sales of single-family homes in Santa Clara County dropped 10 percent from July, but were 8.7 percent higher than a year ago in August. The August median price for a single-family home in Santa Clara County was $973,000, 0.8 percent higher than $965,000 in the previous month and 12.5 percent more than the August 2014 median.
"The shortage of inventory in our region continues to push sales prices higher than original asking prices. We are still seeing multiple offers from competing buyers," said Chris Isaacson, president of the Silicon Valley Association of REALTORS®. "On the other hand, we are also seeing other buyers expanding their home search to places that offer better affordability and a greater housing supply."
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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