California home sales slipped in August after two months of increases as the median home price rose, the California Association of Realtors reported Tuesday.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 394,280 units in August, according to information collected by CAR. August marked the 10th straight month that sales were below the 400,000 level and the 13th straight month that sales have declined on a year-over-year basis.
Sales in August decreased 1.2 percent from 398,940 in July and were down 9.3 percent from 434,910 in August 2013, according to CAR
“With more homeowners in a position to list their homes for sale following rising home prices, housing supply is improving across all price ranges as would-be sellers may be seeing this as an opportunity to list their homes for sale,” said CAR President Kevin Brown.
“While lower-than-expected interest rates are allowing more room for home prices to grow, the appreciation is also creating a housing affordability challenge for prospective home buyers and hindering them from taking advantage of the low rates.”
The median price of an existing single-family detached California home rose 3.3 percent from July’s median price of $464,750 to $480,280 in August and up 8.9 percent from the revised $441,010 recorded in August 2013, CAR reported. The August 2014 price was the highest observed since 2007.
The statewide median home price has increased year over year for the previous 30 months, marking more than two full years of consecutive year-over- year price increases. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
“California’s housing market continues to be bifurcated both geographically and demographically, with the San Francisco Bay Area and high- end housing markets outperforming other regions and market segments,” said CAR Vice President and Chief Economist Leslie Appleton-Young.
— City News Service