Thanks to the data provided by the CAR, the overall housing market in the state of California is to be continued to slowly recover in terms of its home sales, as they climbed their way back to the highest level for the past two years back in July 2020. This has set unprecedented record-high median home prices on the market.
Especially those that are detached homes in the state of California have also totaled a seasonable adjustment of an annualized rate of over 440k units back in July, at least according to the data that was gathered by CAR. This figure alone represents the possibility of would-be homes that could be sold in the next year if they maintain the steady price they have since July throughout the rest of the year.
Thanks to the total annualized rate back in July, there was also a seasonally adjusted rate that went up by about 28.8% overall and that was back in June while it increased by about 6.4% back in July of last year (2019).
On average, the median home price back in July was around 666k dollars, which went up in value in June 2020. In terms of year to date home sales, they were down by about 10% this year back in July. However, its total sales climbed more than the 400K baseline for the first time since the start of this year, around January-February time, especially before the pandemic occurred. Since then, the housing market decreased significantly after being at an all-time high for the back two and a half years. Overall, the total sales from that time back in July reached about 28.8% while in June it was about 6.4%. Now after July of this year, home sales have not been able to post their annual gains since the pandemic.
This is all due to the strong and high demands as well as the low-interest rates and renewed interest in finding values for homeownership. Because of these three reasons, this has boosted the home sales back in July. What’s more, is that since there was a delayed start thanks to the pandemic, many expected that the home sales would stay stagnant until about August and September time, possibly extending it further until the seasons arrived.
Now that home sales are recovering since July and that sale of higher paced properties are beginning to bounce back faster than other parts of the housing market, that leaves us with the median price for most homes hitting new highs thanks to setting tremendous records back in June. This made most homes that ranged around 600k since July of last year have now reached a total median price of 666k dollars per home price value.
The changes that occurred with the mix of sales here were just one factor that helped the median price get higher back in July, as the sales of the more high-priced properties were outpacing the sales of those at lower-price.
For homes that were priced below the 500k mark, which were roughly 44% total in terms of sales made within the housing market of California, they were only 40% total out of all the sales this past July. In fact, most of the high-priced properties such as the million-dollar homes only increased by about 20.4% in its market share values compared to its 18.1% back in June.
This is all because CAR’s Senior Vice President & Chief Economist Leslie Appleton-Young states that the stronger the sales of the high-priced properties are to be propelled forward on a statewide basis, then that means there will be more purchases of expensive homes since they will be less impacted by the recessions occurring at the moment.
Because of the high demand that these home prices are providing to the market, this also causes many other factors such as resorts to be involved as well, further increasing the home prices. This has also caused a shift of workers that are remote to leave these areas and find a more accommodated space. This allows for better lifestyles and more increases in home sales.
Now reflecting on these prices, there have been many polls founded by CAR back in August that have found that an overall 54% of consumers have claimed that it has been a good time to sell compared to 44% a month prior. Additionally, low-interest rates have been paved the way for more homebuying in the market, having 33% of total consumers who also claimed that now is the perfect time to buy a home compared to last year.
Here are some additional key points regarding the reports of the housing resale that have been reported by CAR. This included data analysis such as the following:
From a regional perspective, the sales overall increased in the major regions in California since last year. This was specifically strong in regions such as the Central Coast, where it had increased gains by 21.9%. In San Francisco Bay by 14.8%, 6.6% in Central Valley, and 5.4% in Southern California, which looked more promising back in July in both LA and Orange counties.
By all of the counties tracked by CAR, nearly 9/10 of these counties had experienced an overall annual gain in their closed sales, increasing total from last year at about 82.6% with Amador, 76.9% with Mariposa, and 76.3% with Plumas county. This became an averaged gain of about 25.8% in these counties and in some counties, they had losses in their sales within the more recent months, as Sutter county declined by about 5.9% from last year.
having both Central Coast as well as San Francisco Bay increasing more than 10% total compared to last year’s numbers. Other regions like the Central Valley and Southern California grew as well, having high digit increases and setting record highs in July as well.
Only three of the fifty-one counties had been reported an overall annual price gain back in July, having 23 counties being recorded for an increase of more than 10%. For example, Mariposa county has had the highest price increase since July, increasing by about 51% since last year. The three counties mentioned were:
The housing inventory continued to decline on an annual basis, with the most active listing falling from about no more than 25% for the past eight months. On an annual basis, the 48% decline became the biggest drop overall in these listing since January of 2013. This gradually recovered with closes escrow sales along with a sharp drop in the listing.
For the San Francisco Bay alone, it had a relatively small decline compared to South California and others, but it was still enough with a percentage of 31% in their active listings back in July.
Back in July, the total number of days it took for families to sell their single-family homes was about 17 days total. This and the average price per square footing for these homes was about 340$, an increase compared to July of 2019, which was about 290$.
Sync Brokerage Real Estate of Los Angeles
syncbrokerage.com
Office 818-770-3673
Email: careers@syncbrokerage.com
Woodland Hills Office
22020 Clarendon St. Suite 200. Woodland Hills, CA 91367
Intersection of Ventura Blvd., & Topanga Canyon Blvd.
Studio City Office:
12258 Ventura Blvd, Studio City CA 91604
Facebook: facebook.com/syncbrokerage
LinkedIn: linkedin.com/company/sync-brokerage
Twitter: twitter.com/IncBrokerage
Instagram: instagram.com/syncbrokerage
