California’s housing market continued to show signs of improvement in June, as home sales experienced solid gains annually and home prices reached their highest level since August 2010, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
“Although home sales throughout the state continued to improve compared with a year earlier, we did see a modest dip compared with May,” said C.A.R. President LeFrancis Arnold. “Potential home buyers are frustrated by limited number of homes on the market for sale and growing discouraged by signs that the economy is slowing.”
June 2012 sales volume rose 8.5 percent up from the June 2011 levels. Overall, home prices are continuing to show improvement, with the median home price posting both month-over-month & year-over-year gains for the fourth consecutive month. The statewide median price of an existing, single-family detached home was $320,540 in June 2012, up 8.1 percent from the median price recorded in June 2011 of $296,410. According to the pundits, the market was at it's lowest in 2009. The June 2012 figure of $320,540 was 30.7 percent higher than the cyclical bottom of $245,230 which was achieved in February 2009.
So, "We've come a long way, Baby"!
California’s housing inventory remained stagnant in June, with the Unsold Inventory Index for existing, single-family detached homes remaining at 3.5 months in June, the same level that was reported in May. June’s housing inventory was down from a revised 5.1 months seen in June 2011.
Very simply, the Inventory Index reflects the number of months required to sell the supply of homes on the market at the current sales rate. Historically, a 5 to 7-month supply is considered normal market.
“The lack of inventory continued to impact California’s housing market this month. Tight supply is putting upward pressure on home prices, but it also is restraining sales demand, especially in lower-price segments” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “In June, sales below $300,000 declined 4.1 percent from the previous month, while sales of homes priced higher than $500,000 increased 2.3 percent.”
This is great news for homeowners in Cerritos and Artesia!
Interest rates are continuing their downward trend, with 30-year fixed-mortgage interest rates averaging 3.68 percent, down from 3.80 percent in May 2012 and 4.51 percent in June 2011, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.76 percent in June, up from 2.74 percent in May but lower than the 3-percent average rate reported in June 2011.
The old adage of 'Time is Money' is one now favoring homeowners; with the median number of days it takes to sell a single-family home dropping to 43.4 days in June, down from a revised 45.7 days in May and 50.4 days in June 2011.
Trends in home sales are showing improvement despite market uncertainty and economic free fall, a true testament to the indomitable American spirit!