California Home Sales Drop As Prices Go Up

CALIFORNIA -- California home sales saw a slight dip in November as median prices recorded its highest year-over-year gain since January 2016, according to a report released Monday by the California Association of Realtors. The group said closed escrow sales statewide were 440,340 in November.

The November sales figure was up 2.1 percent from the 431,080 level in October and down 0.8 percent compared with home sales in November 2016 of a revised 443,960.

CAR said the "annual sales dip is largely attributed to an unseasonally strong sales pace last November. Year-to-date sales are running 1.5 percent ahead of last year's pace, but the annual sales pace has been declining since first quarter 2017."

"The state's housing market performed better than we anticipated in November, despite a slowdown in sales activity in the second half of the year," said Steve White, president of CAR. "While high-priced markets have performed well in recent months, sales remain lackluster in the lower-priced segments as the supply of affordable homes continues to shrink. This tale of two markets is not a story that we enjoy telling as the dichotomy in the market is posing some affordability challenges to many potential homebuyers who want to enter the market."

After reaching its highest level in a decade in August, the statewide median price was essentially flat from October but remained above the $500,000 mark for the ninth straight month.

The $546,820 November median price was 0.1 percent higher than October's $546,430 price but climbed 8.8 percent from the revised $502,490 recorded in November 2016. The year-over-year gain was the highest since January 2016.

In specific California regions:

• The Los Angeles Metro and Inland Empire regions recorded year-over-year sales declines of 3.5 percent and 6.2 percent, respectively, while sales in the San Francisco Bay Area inched up 0.7 percent from last year.
• Sales in San Francisco and San Mateo counties grew slightly, while Marin and Napa had very strong gains of 20.6 percent and 22.5 percent, respectively. Sales in Sonoma County rebounded 25.2 percent from the October wildfires. The four counties that reported monthly sales losses were Alameda, Contra Costa, Santa Clara, and Solano counties.
• The Southern California region had slower sales with every county reporting monthly and annual declines (barring a flat Orange). In the Southland – Los Angeles, San Bernardino, and Riverside reported monthly drops of 12.6 percent, 15.9 percent, and 9.1 percent, respectively while San Diego, Orange County and Ventura had declines of 10.4 percent, 4.2 percent and 7.0 percent, respectively.
• Active listings in Los Angeles, Orange, Riverside, and San Diego counties all declined by more than 8 percent from last year. In the Bay Area, every county had fewer active listings from last year with declines of nearly 17 percent for the region and a 36 percent year-over-year decline in active listings in Santa Clara.

--Photo via Shutterstock