Home sales drop, prices stay put

RIVERSIDE – The median price of a single-family home in Riverside County barely budged last month, while sales of existing homes dropped by double digits, the California Association of Realtors reported today.

The median home price countywide in July was $385,500, compared to $385,000 in June, according to CAR.

On a year-over-year level, the price was about 7 percent higher; in July 2016, the median price of an existing single-family dwelling was $359,900, CAR data showed.

Statewide, the median price last month was $549,460, compared to $555,410 in June — down 1 percent. In July 2016, the median price was $511,420, an increase of 7.4 percent, according to the Los Angeles-based realtors’ group.

The median represents the point at which half of homes sell above a price, and the other half below it.

According to CAR’s Unsold Inventory Index for July, the median time a property was on the market in California was 23 days before it sold. In Riverside County, it was 27 days.

From June to July, home sales countywide plummeted 22 percent, according to CAR.

“Tight inventory remained the fuel to upward momentum in home prices, particularly in the Bay Area and other high-priced markets,” said CAR’s chief economist, Leslie Appleton-Young. “With supply is expected to be tight for the rest of the year, home prices should grow moderately in the next few months.”

The average price per square foot for an existing single-family home in California last month was $270 — $1 more than in June and $19 more than a year ago.

2 Responses to "Home sales drop, prices stay put"

  1. tom suttle   August 17, 2017 at 10:08 am

    Interesting. From what I’ve heard, rentals are in high demand because even very qualified potential home buyers are choosing to rent, anticipating a decline in home prices. But… this is not 2008. Back then, a rapid crash in prices happened when something like a classic pyramid scheme of investments came to an end, with many very unqualified profit speculators (this description certainly not applying to all buyers of the era) were left holding the bag when their dreams of big buck turnarounds evaporated. The situation is very different now, for a few reasons… one of which is the fact that “signature only” completely unqualified buyers were subsequently largely (but not entirely) legislated out of the buying market. So, the rapidly cascading effect of a slowing market would be – or at least would seem to be – much less likely. And so, the current “fad” of renting in anticipation of big price drops may turn out to be a bad strategy. We will see.

    Reply
  2. avocadoman   August 18, 2017 at 7:01 am

    i agree with Tom
    the other difference now vs 2008 is…
    – limited inventory, competition to purchase & close quickly
    – substantiating income & mortgage payment to income ratio requirements (difficulty in getting loan approval as Tom presents above)
    – millennials have high student loan debt
    – millennials lack down payment
    – millennials (in general) lack of desire to settle down in suburbs

    Reply

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