California home sales rebound slightly

In a bit of good news, the Orange County Register reported that California’s home sales have increased somewhat recently, although this August’s homebuying was down from the previous August.  Keep reading to find out more in the OCRegister’s article:

California home shoppers seemingly quickly shook off the loss of federal tax breaks last month, with the statewide homebuying pace rising 1.8 percent from July.

The California Association of Realtors report does soberly note that August’s homebuying was down 14.9 percent from a year ago. Home sales across the nation tumbled in July after a springtime rush. Why? Primarily, the June 30 deadline for most buyers to close a purchase to qualify for tax incentives of up to $8,0000.

As for pricing:

  • Statewide median in August 2010 was $318,660, up 8.6 percent in a year.
  • 10th consecutive year-over-year gain.
  • up 1.2 percent compared with July.
  • A separate report by CAR and DataQuick shows price gains are spotty as 176 of 339 communities tracked had increase in respective medians vs. a year ago.

What is selling is taking more time to complete:

  • CAR’s unsold inventory index for single-family resales in August was 6.1 months (to deplete the supply of homes on the market at the current sales rate) vs. 4.6 months a year earlier.
  • Median days to sell was 47.1 days in August vs. 34.8 days in ‘09.

CAR Chief Economist Leslie Appleton-Young: “The housing market is transitioning from the conclusion of the housing tax credits as is evidenced by stronger home sales in the higher-price range and weaker sales in entry-level homes and condominiums, which are typically favored by first-time home buyers. As a result of the strength in the upper-end market and inventory levels that are higher but still lean by average, we’re seeing home prices holding steady.”

Renee West
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Renee West

Broker Associate at Villa Real Estate
I'm a real estate broker associate in Newport Beach & Corona del Mar, CA, with Villa Real Estate.
Contact me at (714) 914 9060 or rwest@villarealestate.com for all your real estate wants and needs.
Renee West
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