Local home sales still sizzle
Home sales cooled slightly on a month-to-month basis following what was a hotter-than-usual summer, yet California’s housing market still posted higher year-over-year totals for the seventh straight month during August.
Home sales remained above the 400,000 mark in August for the fifth consecutive month and rose to the highest level since October 2012, the California Association of Realtors reported recently.
The August figure was down 3.8 percent from the revised 448,900 level in July, but up 9.3 percent compared with home sales in August 2014 of a revised 395,080. The year-to-year change was higher than the six-month average increase of 8.6 percent observed from February 2015 to July 2015.
“Home prices are finally increasing at a healthier pace, and the smallest year- over-year statewide median price gain in nearly three and a half years suggests that home prices are stabilizing,” said California Association of Realtors President Chris Kutzkey.
Even with early signs of seasonal cooling, the home resale market in the Santa Clarita Valley stayed exceptionally busy during August. Local Escrows closed on 248 single-family home sales, up 15.9 percent over the prior year, marking the sixth consecutive month that Santa Clarita Sales stayed above the 200-sale benchmark.
Similarly, a total of 121 condominiums changed owners during August locally, up 30.1 percent over the prior year and the highest total since August 2013.
The local home median of $523,000 was up 6.7 percent and the condo median of $325,000 rose 14 percent from August 2014.
The median price of an existing, single-family detached California home edged up 1 percent in August to $493,420 from a revised price $488,470 in July. August’s median price was 2.5 percent higher than the revised $481,240 recorded in August 2014. 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.
“While California housing indicators remain strong for now, the anticipation of higher mortgage rates and reduced affordability, coupled with global instability and stock market volatility may create an environment of uncertainty that could impact the current momentum in the market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.
“We’re on track to post stronger than expected home sales for 2015, with the last quarter moderating but still solid,” Appleton-Young said.
Bob Khalsa is president of the Santa Clarita Valley Division of the 9,100-member Southland Regional Association of Realtors. David Walker, of Walker Associates, co-authors articles for SRAR. The column represents SRAR’s views and not necessarily those of The Signal. The column contains general information about the real estate market and is not intended to replace advice from your Realtor or other realty related professionals.