Following a strong first quarter start, California home sales lost momentum in April, while the median home price accelerated to a near-10-year high, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.) said today.
Closed escrow sales of existing, single-family detached homes in California remained above the 400,000 benchmark for the 13th consecutive month and totaled a seasonally adjusted annualized rate of 406,300 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The April figure was down 2.4% from the 416,110 level in March and down 1.7% compared with home sales in April 2016 of a revised 413,270.
“With pending home sales slowing over the past three months, April’s sales decline was not a surprise,” said C.A.R. President Geoff McIntosh. “Some sales that took place in the first quarter were likely pulled forward as home buyers took advantage of the favorable interest rate environment and decided to purchase now before rates increase. Moving forward, the housing market may temper further as interest rates inch up and the supply of available homes for sale tightens.”
The statewide median price stayed above the $500,000 mark for the second straight month and reached the highest level since August 2007. The median price was up 3.7% from $517,490 in March to reach $536,750 in April, and was 5.4% higher than the $509,240 recorded in April 2016.
“California’s median home price has been on an upward trend on an annual basis since March 2012 and is now at the highest in nearly 10 years,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “The yearly price gains will most likely persist through the remainder of the home-buying season, further exacerbating an already-low housing affordability situation. This could have an adverse effect on home sales in the upcoming months, especially since interest rates are expected to rise in the second half of the year.”
