Despite an impressive performance in the first six months of the year, the market momentum appears to be moderating in California with existing home sales dipping for the second month in a row, according to the California Association of Realtors.
Almost all counties reported by the association declined in active listings from last June, and 47 of them dropped by double-digits when compared to the same time last year.
“We’re starting to see what a difference just a slight uptick in inventory and listings can do to help lessen the buying frenzy and create a sense of normalcy,” said CAR President Dave Walsh. “The market is still extremely competitive, with 70 percent of homes selling above list price; however, the number of new listings increased in June, and both the share of listings with a reduced price and median reduction amount increased, giving buyers more opportunities to purchase.”
June home sales dipped 2.2% on a monthly basis from 445,660 in May but were up 28.3% percent from a year ago, when 339,910 homes were sold on an annualized basis. With strong sales growth in June, the state housing market ended the first half of the year with a year-to-date increase of 33.6%. Higher-priced markets continued to do well while sales of lower-priced properties remained below last year’s levels.
California’s median home price set a new record high for the fourth straight month in June as the median price slightly increased 0.2% on a month-to-month basis to $819,630 in June, up from May’s $818,260 and up 30.9% from the $626,170 recorded last June. The median price in California also remained above the $800,000 benchmark for the third consecutive month.