Local home sales, prices steady

Prices inch upward in Porterville

The median price paid for a home in Porterville in the month of May was off just slightly from a year ago as sales remain steady, but not significant.

During the month of May the median price paid in Porterville was $175,000, off just 2.2 percent from a year ago, according to Corelogic. It is one of the few times prices have declined over a year ago.

Only 68 homes were sold in May, which is about the average for the past several months. Those in real estate continue to say inventory is a challenge and the lack of new home building is hurting the availability of existing homes on the market.

Lindsay, where a new housing subdivision is underway, saw the median price of homes jump by 37.5 percent to $192,000.

Overall in the county, 532 homes were sold during May, again about on par with the past several months. The median price did rise by 6.1 percent over May of last year to $212,250.

Statewide, the housing market rebounded in May as existing home sales and median home price recorded strong gains on both a monthly and annual basis, a trend in every major region of the state, the California Association of Realtors (C.A.R.) said.

Closed escrow sales of existing, single-family detached homes in California remained above the 400,000 benchmark for the 14th consecutive month and totaled a seasonally adjusted annualized rate of 430,060 units in May, according to information collected by C.A.R. from more than 90 local realtor associations and multiple listing services statewide. The statewide sales figure represents what would be the total number of homes sold during 2017 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The May figure was up 5.4 percent from the revised 408,030 level in April and up 2.6 percent compared with home sales in May 2016 of a revised 419,000.

“Mortgage rates dropping to the lowest level since November could have been a motivating factor for the sales increase in May,” said C.A.R. President Geoff Mcintosh. “The low interest rate environment, however, may not last long as the Federal Reserve’s gradual rate hike and plan to reduce its balance sheet will likely lead to higher rates, and could change the momentum of the market.”

The statewide median price stayed above the $500,000 mark for the third straight month and reached the highest level since August 2007. The median price was up 2.3 percent from a revised $537,920 in April to reach $550,200 in May, and was 5.8 percent higher than the revised $519,930 recorded in May 2016. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling, as well as a general change in values.

“Despite a solid performance thus far in the spring housing market, the continued mismatch between buyers and available homes for sale that’s driving up home prices remains an issue,” said C.A.R. Senior Vice President and Chief Economist Leslie Appletonyoung. “Stubbornly low supply levels will continue to propel prices higher and, when combined with imminently higher interest rates, will worsen an already dismal affordability issue in the housing market.”