My Loan Officer
  • Loading...

New American Focus:
Mortgage & Real Estate

New American Focus: Mortgage & Real Estate

Translating the complexity of the markets into a concise and easy to digest format. Watch videos, read blogs, and view key data on short and medium term trends impacting interest rates, so you can make the right decision for your situation.

California Home Sales Cool Slightly, but Prices Hit Another Record High

California home | California Home Sales Cool Slightly, but Prices Hit Another Record High

California’s housing market was hotter than it’s ever been in April, and it appears that intensity may have been a little too much for the Golden State’s residents.

According to a new report from the California Association of Realtors, homebuyers in California began to exhibit “buyer fatigue” in May due to the lack of available inventory, record high prices, and incredibly competitive market.

The report showed that California home sales declined by 2.7% in May, with potential buyers choosing to stay on the sideline rather than pursue homeownership in this market.

"The overheated housing market is showing signs of a much-needed cooling and could be a sign of waning buyer interest as the torrid pace of home price increases and buyer fatigue adversely affected demand," CAR President Dave Walsh said in a statement. "We're seeing many would-be buyers taking a break and hoping to see more listings as the economy reopens and prospective sellers list their homes for sale."

However, while home sales fell a bit, home prices did not.

According to the CAR report, California home prices set another record in May, with the statewide median home price climbing to $818,260. That’s up nearly 40% from last May’s total of $588,070 and up from April’s previous record total.

The report notes that “robust demand” for high-dollar properties drove the record-breaking increase. According to CAR, million-dollar home sales have risen by more than 200% from May 2020.

Put another way, “more million-dollar properties were sold in the past couple of months than homes priced below $500,000,” CAR states in its report.

Homes in California also continue to sell basically just as quickly as they hit the market. According to CAR’s report, the median number of days it took to sell a single-family home in California remained at seven days in May, the same as it was in April.

On the positive side, the number of listings on the market is on the rise, hitting the highest level in six months.

"A lack of housing inventory continues to push up prices, and modestly higher interest rates, increased competition, and declining affordability have caused some buyers to become discouraged,” CAR Vice President and Chief Economist Jordan Levine said.

“Despite strong growth rates, the level of home sales has fallen on a monthly basis in four of the last five months. Additionally, pending sales data for May, which was virtually unchanged from April, suggests further slowing in coming months,” Levine continued. “Fortunately, new listings have finally started to rise, which could help to sustain a higher level of home sales deeper into summer by providing much-needed supply.”

Demand for New Homes Fell in June While it looks like homebuying may have picked up in June, new data shows that … Read »
New Home Construction Continues Rising, But So Do Prices There’s some good news on the new home front, as construction of new … Read »
Home Sales Still Projected to Rise in 2021 It appears that neither rising home prices nor a lack of available inventory can … Read »
Homebuying Heated Up in June The most recent pending home sales data from the National Association of … Read »

How low will your payment be?

Important Updates:  We have updated important provisions in our Terms of Use and Privacy Policy, including cookies and session recording. By using our site, you agree to our Terms of Use and acknowledge that you have read our Privacy Policy.  Click here for more information.