California Home Sales:
Home Prices See Largest Annual Growth
In 7 Years
California Home Sales Inventory
Less Than 3 Month Supply In March
The California home sales market is seeing prices rise and inventory drop. The Standard & Poor's/Case-Shiller index shows that home prices in the USA's 20 largest cities were up 9.3% over this same time last year. There is worry, however, that the report should be taken "with a grain of salt". Since we're talking about the 20 largest cities, there's a feeling that the report may be skewed by including most of the countries quickest rebounding markets. The Southwest includes many of these locations, and real estate is rebounding quicker here than in other parts of the nation. California home sales are among those leading the pack.
Here's an article from ABCNews 10 in Sacramento that explains it all.
"Nationwide, there was a 4.7-month supply of homes for sale in March, meaning they would all sell in that time frame if sales continued at March's pace and no supply was added. Typically, a six-month supply is considered balanced. California markets have even tighter supplies of homes for sale, dropping below 3 months in March, the California Association of Realtors says. …News10.net"
California Home Sales Prices Squeezed Upwards By Lack Of Inventory
The California home sales market is being squeezed by low inventory. Competition is high among buyers and the lack of new REO offerings contributes as well. Prices in many areas have risen quickly enough to cause worry among many analysts. The worry is not that we're experiencing another "bubble" … we're far from that. The worry is that some areas are overblown enough to warrant a pull-back in sales prices as a correction in a long-term upward trend. California home sales are a perfect example of that, and we may be looking at a bit of a correction here in the next couple of months.
California Home Sales.