[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Clear
Clear
60°F
 
Calendar
Today in
S.C.V. History
May 24
1860 - Colonel Thomas F. Mitchell arrives in Soledad Canyon [story]
T.F. Mitchell


California Association of Retailers logo

California’s median home price reached a new high in May, while home sales retreated both on a monthly and annual basis, wiping out most of the gains posted for the year, the California Association of Realtors said Tuesday.

The Southern California Region continued to lag the state. Overall sales in the region declined by 5.8 percent compared to a year ago, and sales in five of the six counties dropped on a year-over-year basis. Sales in Riverside County declined the most, followed by Orange County, and San Diego. Only San Bernardino County recorded an annual sales gain.

Statewide, closed escrow sales of existing, single-family detached homes totaled a seasonally adjusted annualized rate of 409,270 units in May, according to information collected by C.A.R. from more than 90 local Realtor associations and MLSs statewide.

The statewide annualized sales figure represents what would be the total number of homes sold during 2018 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

May 2018 California home sales, per California Association of Realtors.

May’s sales figure was down 1.8 percent from the revised 416,750 level in April and down 4.6 percent compared with home sales in May 2017 of 428,870.

May marked the first year-over-year sales decline in four months and the lowest sales level in more than a year.

May 2018 California home sales, per California Association of Realtors.

“The softening in May home sales was due in part to the spike in interest rates in mid-April, when the 30-year fixed mortgage rate jumped 20 basis points in just one week to reach the highest level since 2014,” said C.A.R. president Steve White.

“Homebuyers may have postponed escrow closings to wait out the effects of the rate surge,” he said. “Additionally, the specter of rate increases earlier in the year may have pulled sales forward into the first quarter, which resulted in the subpar performance in the last couple of months. Looking ahead, higher mortgage rates and elevated home prices will heighten affordability constraints that will likely temper the housing market in the coming months.”

For the first time in 11 years, the statewide median home price surpassed its previous peak price of $594,530, which was recorded more than 10 years ago during the last housing boom.

The May statewide median price was $600,860, up 2.8 percent from a revised $584,460 in April and up 9.2 percent from a revised $550,230 in May 2017. The year-over-year price growth pace was the highest rate of growth since May 2014.

The statewide median price per square foot rose to $286 in May, the highest figure since November 2007, and marks “real” growth in home values rather than a shift in the market toward sales of larger or higher-end homes.

However, with the Bay Area outperforming the rest of the state, there is undoubtedly some pressure on the median price as the Bay Area made up a larger share of home sales.

“As we predicted last month, California’s statewide median home price broke the previous pre-recession peak set in May 2007 and hit another high as tight supply conditions continued to pour fuel on the price appreciation fire,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young.

“With inventory starting to show signs of improvement, however, home price appreciation could decelerate in the second half of the year, especially since further rate increases are expected to hamper homebuyers’ affordability and limit how much they are willing to pay for their new home,” Young said.

Other key points from C.A.R.’s May 2018 resale housing report include:

On a regionwide, non-seasonally adjusted basis, only the San Francisco Bay Region recorded both solid month-to-month and year-over-year sales gains. Sales in the Bay Area rose 17.3 percent monthly and 2.1 percent annually.

Sales in the Inland Empire increased 7.6 percent from April and was down 5.0 percent from a year ago. The Los Angeles metro region experienced a 12.6 percent monthly sales jump but was down 5.6 percent annually.

The Bay Area Region, which has recorded annual sales increases for the past four months, continued to lead the state in home sales. Five of nine Bay Area counties posted year-over-year sales gains – with San Francisco increasing by double-digits – while Napa, Sonoma, Santa Clara, and Solano counties experienced annual sales declines.

The Central Valley Region maintained its momentum for the fifth consecutive month as regionwide sales experienced a slight 0.9 percent improvement and nine of 12 counties in the region performed better than the previous year. Three counties – including Glenn, Kern, and San Benito – posted double-digit increases, but their gains were mostly offset by the losses of San Joaquin, Placer, and Stanislaus.

The bottom end of the market continued to bear the brunt of the housing shortage as the availability of homes priced under $200,000 declined by 28.7 percent on an annual basis, and those priced between $200,000 and $299,999 dropped 13.1 percent.

On the other hand, inventory of properties priced $1 million and above increased by more than 18 percent. In general, supply constraints continue to limit sales in market segments priced below $500,000, but higher-priced properties continue to show modest to strong growth in sales in the recent month.

Home prices in the Bay Area remained robust in May, with the region’s median price spiking 16.4 percent from $935,000 in May 2017 to $1,088,000. In fact, the median price for the region remained above the $1 million benchmark for the second straight month and set a new record high.

Five of the nine counties in the region had a median price above $1 million in May 2018, with Alameda becoming the latest member to join the million-dollar club ($1,025,000).

Other million-dollar club members include San Francisco ($1,620,000), San Mateo ($1,600,000), Marin ($1,415,000) and Santa Clara ($1,400,000). Home prices increased in all nine counties on a year-over-year basis, and prices in three counties climbed by more than 10 percent.

Home prices in Southern California were more tepid by comparison but still showed a steady upward trend. Prices in San Bernardino and Los Angeles increased the most with near double-digit growth rates, while prices throughout the rest of the region grew at a more modest rate ranging between 4.6 percent and 5.8 percent.

An aerial view of Pardee Homes' Fair Oaks and Aliento developments in Canyon Country, June 2018. | Photo: Stephen K. Peeples.

An aerial view of Pardee Homes’ Fair Oaks and Aliento developments in Canyon Country, June 2018. | Photo: Stephen K. Peeples.

The number of statewide active listings improved for the second consecutive month, increasing 8.3 percent from the previous year. The year-over-year increase was the largest since January 2015, when active listings jumped 11.0 percent.

Perhaps more homeowners are listing their homes for sale in an effort to cash out on recent home price surges. The increase in active listings was also partly due to the sales decline, which led to a boost in inventory.

As sales declined from a year ago, the unsold inventory index, which is a ratio of inventory over sales, increased on a year-over-year basis as well. The statewide unsold inventory index edged up to 3.0 months in May from 2.9 months in May 2017. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate.

The median number of days it took to sell a California single-family home remained low at 15 days in May compared with 14 days in May 2017.

C.A.R.’s statewide sales price-to-list price ratio* was 100 percent in May, unchanged from May 2017.

The average statewide price per square foot** for an existing, single-family home statewide was $286 in May, up from $268 in May 2017.

Mortgage rates have been on the rise since breaking the 4.0 percent barrier in January. The 30-year, fixed-mortgage interest rates averaged 4.59 percent in May, up from 4.47 percent in April and from 4.01 percent in May 2017, according to Freddie Mac.

The five-year, adjustable mortgage interest rate also perked higher in May to an average of 3.79 percent from 3.66 percent in April and from 3.12 percent in May 2017.

Related Graphics (click links to open):

Calif. historical existing home sales
Calif. historical median home price
Sales to active listings by region
Historical price per square foot

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of Realtors throughout the state and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

* Sales-to-list price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

** Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties.

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

2 Comments

  1. Great intel and well put together. The housing market is super tight and totally in the sellers’ zone. It’ll be interesting to watch what the future hikes in interest rates will reveal. As it was back during the last .5% increase, we noticed a couple of weeks where the business slowed a bit with new contacts/clients. But then it resumed as it had been before. That .5 shows as $50,000.00 in real financial ‘approval’ level impact in a home buyer who had been previously approved for a $500,000.00 loan. After a .5 increase in interest rates – they are now approved for approx $450,000.00. Higher interest rate increases will cause further market impact to be certain.

  2. Cyndi says:

    It is always good to review the statistics as presented from California Association of Realtors of which I have been a member for over 15 years. I also like to review the number of days a home stays on the market. This number is often subjective to the price point of the home. It is also impacted by the seller agreeing to a price that is in correlation to the most recent sold homes. In my professional opinion pricing is correctly will warrant you the highest best price. Over pricing a home could create the need to reduce the price lower then the last one sold. Pricing it correctly could still garnish multiple offers and an increase in value. It is important to know your numbers and know your homes competition before putting it on the market. The more you know! :)

Leave a Comment


Latest Additions to SCVNews.com
The Beer Institute and the National Beer Wholesalers Association have released their "Beer Serves America" economic report on the nation’s beer industry, showing the U.S. beer industry supports more than 2.1 million jobs and contributes more than $328 billion to the U.S. economy.
Report: Beer Industry Creates 2 Million Jobs, Pours $328B into U.S. Economy
Los Angeles County's Department of Animal Care and Control has received a 2019 Achievement Award from the National Association of Counties for DACC's "Pawsitive Steps" program.
LA County Animal Care Wins National Achievement Award
Santa Clarita Valley Sheriff's Station detectives released a composite sketch Friday afternoon of the man suspected of indecent exposure in Towsley Canyon Park on Thursday, May 16.
SCV Detectives Issue Sketch of Indecent Exposure Suspect
Santa Clarita Valley Sheriff’s Station deputies rescued a suicidal man from a Canyon Country bridge on Thursday night, station officials reported.
SCV Deputies Rescue Suicidal Man on Canyon Country Bridge
The Valley Industry Association will host "Cocktails and Conversation: An Evening with Kathryn Barger" at the Valencia Country Club on Wednesday, June 26, from 6 p.m. to 8 p.m.
June 26: VIA to Host Evening with LA County Supervisor Kathryn Barger
The Santa Clarita City Council will hold its next regular meeting Tuesday, May 28, starting at 6 p.m. and preceded by a special meeting at 5:30 p.m. for labor negotiations.
May 28: Santa Clarita City Council Special, Regular Meetings
The California Department of Tax and Fee Administration reported tax revenue numbers Friday totaling $116.6 million for cannabis sales for the first quarter of 2019, nearly doubling revenue over the first quarter of 2018.
Cannabis Tax Revenue in First Quarter 2019 Nearly Doubles 1Q 2018
To improve Memorial Weekend holiday traffic flow on Interstate 5 through the Santa Clarita Valley, the California Department of Transportation opened a fourth northbound lane Wednesday where only three lanes were open in recent months due to construction.
Caltrans Opens New I-5 Lane in Time for Memorial Weekend
U.S. Rep. Katie Hill, D-Agua Dulce, will celebrate Memorial Day in all three valleys of California's 25th Congressional District with events on both Saturday, May 25 and Monday, May 27.
Hill to Spend Memorial Weekend in 3 Valleys
After getting rained out on Wednesday, the JetHawks and Inland Empire 66ers split a doubleheader Thursday night at San Manuel Stadium.
JetHawks Split Thursday Double-Header with 66ers
The Los Angeles County Health Officer has called a Cold Weather Alert due to the National Weather Service’s forecast for low temperatures for the Los Angeles County mountain areas on Sunday, May 26.
Cold Weather Alert Called for Local Mountains on Sunday
The Santa Clarita City Council invites the public to attend an unveiling ceremony in front of the Valencia Library for the newest public art sculpture in Santa Clarita called “Imag_ne” by Australian artist Emma Anna on Wednesday, June 5, at 10 a.m.
June 5: Unveiling of ‘Imag_ne’ Public Art Piece at Valencia Library
While college is a faraway thought for most junior high students, Mark Gray was not only thinking about college, but also saving up for it, too.
Hard Work Pays Off for COC Graduating Student
Detectives from the Santa Clarita Valley Sheriff's Station seek the public's help to identify a man suspected of stealing personal items from a locker at the LA Fitness club in Centre Pointe.
SCV Detectives Seek ID of Suspected Gym Locker Thief
A housing development plan for Canyon Country, introduced in 2006 when the housing industry entered the Great Recession, was dusted off this week and given a one-year extension by regional planners.
Regional Planners OK Time Extension for Canyon Country Development
Governor Gavin Newsom on Friday issued a proclamation Friday officially declaring Monday, May 27, 2019, as “Memorial Day” in the state of California.
Newsom Issues Proclamation Declaring Memorial Day
While still currently under construction, the development project formerly known as Newhall Ranch, which is also part of Valencia, will bring kids into the Saugus, Castaic and Newhall elementary school districts, as well as the William S. Hart Union High School District, local school officials have been told.
FivePoint Development to Add Enrollments to 4 SCV School Districts
A Santa Clarita woman who led police on a pursuit from Valencia to Tarzana while driving an RV with two dogs inside on Tuesday was charged Thursday with nine felony counts, according to the Los Angeles County District Attorney’s Office.
Woman Driving RV in Police Pursuit Charged with 9 Felonies
1860 - Colonel Thomas F. Mitchell arrives in Soledad Canyon [story]
T.F. Mitchell
After one and a half hours inside a crumpled car, the last of two people trapped was freed from the wreckage.
3 Hurt in Multi-Vehicle Stevenson Ranch Crash
The city of Santa Clarita is excited to announce the winners of the 16th annual “Bike to Work Day” Challenge that took place on Thursday, May 16.
City Announces Winners of ‘Bike to Work Day’ Challenge
SACRAMENTO – The U.S. Department of Homeland Security (DHS) notified California on Wednesday that it is in full compliance with the federal REAL ID Act and regulation.
DHS: California in Full Compliance with REAL ID Regulations
The Los Angeles County Department of Public Social Services (DPSS) announces the expansion of the State of California’s CalFresh Program to now serve older adults and people with disabilities who receive Supplemental Security Income (SSI) benefits, beginning June 1, 2019.
CalFresh Expanding to Seniors, People with Disabilities Receiving SSI Benefits
LOS ANGELES – The Dodgers will hold their annual Alumni Game on Saturday, June 1, as part of Alumni Weekend presented by Security Benefit, when the club will welcome back over 30 fan-favorite players to Dodger Stadium.
More than 30 Fan Favorites to Take Part in Dodgers Alumni Weekend
SCVi, iLEAD’s founding school, will welcome Dr. Jacob Cohen, Chief Scientist at NASA Ames Research Center, to campus on Friday to kick off the school’s inaugural International Hack Into Space Competition, the school announced Thursday.
May 24: SCVi Hosts Inaugural International Hack into Space Competition
Three-hundred employees from the Los Angeles County Department of Public Social Services (DPSS) volunteered their Saturday morning over Mother’s Day weekend to inspire hope at their annual “Help the Homeless” event at the Weingart Center in downtown L.A.
County Employees Inspire Hope at Annual ‘Help the Homeless’ Event
SACRAMENTO - State Sen. Scott Wilk, representing the 21st Senate District, announced Thursday the Senate unanimously approved Senate Bill 219 (SB 219), a measure that will create a pilot program for foster youth to receive grants for extracurricular and enrichment activities.
Wilk Legislation to Create Foster Youth Pilot Program Clears State Senate
The Old Town Newhall Farmers Market will be celebrating their 4 year anniversary this Saturday, May 25, from 8:30 a.m. - 1:30 p.m. in the parking lot of the Old Town Newhall Library.
May 25: Old Town Newhall Farmers Market 4 Year Anniversary Celebration
Many people in our community have a parent or other family member who may be a veteran, who is presently deployed overseas, or who has recently returned home from active duty in the military.
June 15: Pathways to Empowerment SC Veteran & Family Mental Health Day
Robert Penalber is fairly confident that before long very little of what transpired on the course this week, or over the last four years for that matter, will be remembered.
Penalbar Misses Cut at NAIA Nationals
Well Q2 was removed from service after quarterly perchlorate sampling conducted on May 8, 2019, returned a result of 0.006 mg/L – which is the Maximum Contaminant Level (MCL), where treatment becomes necessary or a supply needs to be removed from service. Q2 is located near the Lowe’s shopping center on the west side of Bouquet Canyon, just north of the Santa Clara River.
Perchlorate Detected in Well Near Lowes Shopping Center
WASHINGTON, DC – U.S. Rep. Katie Hill serves as co-chair of the New Democrats’ Housing Task Force, which made public its goals for the 116th Congress on Wednesday. Hill serves alongside Representatives Denny Heck (D-WA) and Ben McAdams (D-UT).
Hill to Address Homelessness, Housing Shortage with New Task Force
The California Enterprise Development Authority will hold a teleconference meeting Thursday, May 23, at 10:30 a.m.
May 23: California Enterprise Development Authority Teleconference Meeting
WASHINGTON – As the summer vacation and travel seasons opens, U.S. Secretary of the Interior David Bernhardt announced Thursday that visitor spending in communities near national parks in 2018 resulted in a $40.1 billion benefit to the nation’s economy and supported 329,000 jobs.
Visitor Spending at National Parks Contributed $40B to US Economy
1941 - SCV's first real movie house, the American Theater, dedicated in Newhall [story]
American Theater
%d bloggers like this: