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

Inside
Weather
Santa Clarita CA
Mostly cloudy
Mostly cloudy
56°F
 
Calendar
Today in
S.C.V. History
January 20
1993 - Hart High grad Dee Dee Myers (1979) becomes first female White House press secretary [story]


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
1993 - Hart High grad Dee Dee Myers (1979) becomes first female White House press secretary [story]
1967 - Original airing of Star Trek "Arena" Episode: Kirk battles the Gorn commander (Saugus resident Bobby Clark) at Vasquez Rocks [watch]
Skylight Books in Downtown Los Angeles will host author and CalArts alum Johanna Hedva (Art MFA 2013, Critical Studies MA 2014) to discuss Hedva's 2018 book, "On Hell," with fellow CalArtian Asher Hartman (Art MFA 03) on Saturday, Jan. 26, starting at 5 p.m.
Jan. 26: CalArtians Asher Hartman, Johanna Hedva to Talk ‘On Hell’ at Skylight Books
Bank of Santa Clarita announced Friday that for the fourth quarter and full year of 2018, bank earnings continue at record levels, as net earnings for the quarter totaled $795,000, more than doubling its earnings for the fourth quarter of 2017.
Bank of Santa Clarita Reports Record Earnings for 2018
No. 9 Vanguard forced 18 turnovers, made 13 threes and led by as many as 18 on the way to an 82-75 win.
Men’s Hoops: No. 5 Master’s Falls to No. 9 Vanguard
The Mustangs held the Golden State Athletic Conference's top offense to four points in the fourth quarter, outscoring their host by 18 in a dominant final period.
Women’s Hoops: Lady Mustangs Dominate 4th to Beat Vanguard
The Los Angeles County Board of Supervisors on Tuesday will consider a motion by Supervisors Kathryn Barger and Hilda L. Solis to develop a plan to increase the number of mental health hospital beds in the county.
Barger, Solis Seek Plan for More Mental Health Hospital Beds
The next meeting of the Los Angeles County Board of Supervisors is set for Tuesday, Jan. 22, starting at 1 p.m.
Jan. 22: LA County Board of Supervisors Meeting
The city of Santa Clarita wants to remind residents they can receive permit assistance from the comfort of their home or office by using the Online Permit Center available at santa-clarita.com/PermitCenter.
Reminder: City’s Online Permit Center Makes Process Easier
The St. Francis Dam Disaster National Memorial Act has been reintroduced in the U.S. Senate by Senators Kamala Harris and Dianne Feinstein (both D-California), according to a Harris tweet Thursday.
St. Francis Dam Bill Reintroduced in US Senate as Stand-Alone
Despite an attorney for a former Los Angeles County jail officer telling a federal jury Friday her client didn’t know his report about fellow officers beating a man inside a jail in 2011 was wrong when the FBI interviewed him, jurors wasted little time in finding him guilty of lying to investigators.
Jury Finds Officer Lied to FBI in LA County Jail Beating Cover-Up
The fifth day of the Los Angeles teacher strike began Friday with bargaining talks and a union rally, capping off a tumultuous week for parents, students and educators.
Rallies Cap First Week of LA Teachers Strike
Thousands more children may have been separated from their families at the U.S.-Mexico border under the since-abandoned “zero tolerance” immigration policy than previously thought, a report by the Office of Inspector General revealed Thursday.
Report: Feds Separated Thousands More Families at Border Than Thought
The four Pacific storms that battered California in January produced the season's first significant rainfall, dumping enough moisture to ease the state's historic drought, according to the U.S. Drought Monitor.
January Storms Ease California Drought
Segments of California State Road 126 aka Highway 126 will be closed next week for a grinding operation in the cities of Ventura and Santa Paula, California Department of Transportation District 7 officials announced Friday.
Night Closures Set for Highway 126 Repaving in Ventura, Santa Paula
1899 - Martin & Richard Wood buy J.H. Tolfree's Saugus Eating House, rename it Saugus Cafe [story]
CBRE announced a full-service provider to the entertainment industry leased an industrial building in Valencia for $7.7 million.
Full-Service Entertainment Provider Leases Valencia Building for $7.7 Million
California State University, Northridge biology professor Steven Oppenheimer is celebrating 23 years of collaboration with Los Angeles Unified School District (LAUSD) teachers to promote science, technology, engineering and mathematics (STEM) research done by K-12 students with the debut of volume No. 23 of The New Journal of Student Research Abstracts.
CSUN Professor Celebrates 23 Year Collaboration with LAUSD STEM Students
More than 10 million people worldwide are living with Parkinson’s disease.
CSUN Now Home to Groundbreaking Parkinson’s Treatment
LANCASTER - The University of Antelope Valley is pleased to announce the hiring of Seth Gerdine as its head coach for its new Esports program.
UAV Hires Seth Gerdine as First Head Coach of Esports Program
The Los Angeles County Board of Supervisors recognized and honored the Kitten Academy at Camp Joseph Scott during its regular meeting at the Kenneth Hahn Hall of Administration Tuesday in Downtown Los Angeles.
Barger Lauds Probation Youth Kitten Fostering Program
Discipline standards for the Los Angeles County Sheriff’s Department (LASD) have been a source of concern for several years.
Villanueva Issues Statement on Review of Discipline Standards
Santa Clarita Valley Realtor Craig Martin, of Realty One Group, commemorates twenty years helping buyers achieve the dream of homeownership, going above and beyond your typical agent.
SCV Realtor Commemorates 20 Years with Home Rewards Program
The 91st Academy Awards nominations in all 24 Oscar categories will be announced in a two-part live presentation on Tuesday via global live stream on Oscar.com, Oscars.org, the Academy’s digital platforms – Twitter, YouTube, Facebook – a satellite feed and local broadcasters.
91st Academy Awards Nominations to be Announced Tuesday
The Santa Clarita Community College District’s Independent Citizens’ Oversight Committee accepted the audit results, which showed that for the 12th year in a row, the district has properly accounted for all bond expenditures.
Santa Clarita College District Receives Best Rating in Audit of Bond Spending
The public is invited to Tomo-Kahni State Historic Park’s 25th anniversary celebration on Saturday, Jan. 26, from 1:00 p.m. - 4:00 p.m., featuring a talk by anthropologist Dr. Bruce Love and a flint knapping demonstration by master flintknapper Gary Pickett.
Jan. 26: Tomo-Kahni State Park’s 25th Anniversary Celebration
The city of Santa Clarita will host a ribbon cutting event on Thursday, Jan. 31, at 10:00 a.m. to celebrate the Pace Bike Share Program launch at the newly opened Pace Bike Share Station at the Iron Horse Trailhead.
Jan. 31: Pace Bike Share Program Ribbon Cutting at Iron Horse Trailhead
NORTHRIDGE - CSUN Men's Basketball (8-10, 2-0 BWC) returns home on Thursday to host Hawai'i in its Big West home opener at 7:00 p.m. The game will air live on ESPN3 while Ghizal Hasan and Alan Zinsmeister are on the call in an audio broadcast on the CSUN Sports Network presented by Dignity Health.
Matadors Return Home for Big West Opener Against Hawaii
Because of the recent rainfall, Los Angeles County Health Officer, Muntu Davis, MD, MPH, is cautioning residents who are planning to visit Los Angeles County beaches to avoid swimming, surfing, and playing in ocean waters around discharging storm drains, creeks, and rivers.
Beach Water Advisory Extended Until Monday
Amgen Tour of California organizer and operator AEG announced the technically-innovative cycling apparel brand ASSOS of Switzerland has renewed a multi-year partnership to provide official race jerseys, VIP and staff apparel, and licensed merchandise for America’s premier cycling stage race.
Jerseys for 2019 Amgen Tour of California Revealed
The Los Angeles County Department of Public Works released the list of road closures due to mud and rock slides from the current storm.
Upper Bouquet Canyon Remains Closed
1994, 4:31 a.m. - Magnitude 6.7 Northridge earthquake rocks Santa Clarita Valley [video]
College of the Canyons' Valencia Campus is on lockdown, according to a notice from the Santa Clarita Valley Sheriff's Station posted about 5:15 p.m. Wednesday.
COC Valencia Campus Deemed Safe after Wednesday Evening Scare
Santa Clarita Studios, an independent studio operator, has leased a 109,379 square-foot industrial building in Valencia, CBRE announced Wednesday.
Santa Clarita Studios Leases 109K-Square Foot Industrial Building
"Black Monday," a new comedy series starring CalArts alum Don Cheadle (Theater BFA 86) along with Andrew Rannells and Regina Hall, will premiere Sunday, Jan. 20, on Showtime.
Jan. 20: CalArts Alum Don Cheadle Stars in Showtime’s ‘Black Monday’
CalArts’ 2019 MA Aesthetics and Politics Theorist in Residence N. Katherine Hayles will present her lecture "Human as Alien: From Frankenstein to Ex Machina and Annihilation" at REDCAT in Downtown Los Angeles on Wednesday, Jan. 23, at 8:30 p.m.
Jan. 23: ‘Human as Alien’ Lecture by CalArts Theorist in Residence