California home sales stumbled in July as low inventories and eroding affordability dragged down the housing market, the California Association of Realtors said today.
Closed escrow sales of existing single-family detached homes in California totaled a seasonally adjusted annualized rate of 415,840 units in July, according to information collected by CAR.
The statewide sales figure represents what would be the total number of homes sold during 2016 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The July figure was down 4.1 percent from the revised 433,600 level in June and down 5.1 percent compared with home sales in July 2015. Home sales remained above the 400,000 pace for the fourth straight month, but sales have declined year over year for the fifth consecutive month.
“Despite the tight housing supply conditions that have persisted over the past few years, home sales have stayed relatively solid,” said CAR President Pat Zicarelli. “Even with a shortage of homes on the market, low rates and strong demand have been the norm.”
The statewide median price remained above the $500,000 mark for the fourth straight month, but there are signs of an expected slowing in price growth, CAR said.
The median price of an existing single-family detached California home slipped 1.8 percent in July to $509,830 from $519,410 in June. July’s median price increased 3.9 percent from the revised $490,780 recorded in July 2015.
