California Home Sales – “Existing, single-family home sales totaled 405,530 in December on a seasonally adjusted annualized rate, up 9.6 percent from November and up 10.7 percent from December 2014.”
California Home Sales:
CAR Releases Dec Sales & Price Report
The California Associaiton of Realtors (CAR) has released its figures for home sales and prices in December. As expected, the numbers show a marked rebound from November. The December number of sales was up 9.7% over November, and also up 10.7% over December of 2014.
The increase in number of sales was made a bit more pronounced because of some closings that were slated to occur in November, but were delayed. The Consumer Financial Protection Bureau put some new disclosure requirements into effect during November, and there were a certain number of transactions delayed as some lenders needed to re-write loan documents and disclosures to comply. Most of those closed in December, and this may have skewed the numbers upwards a bit.
The CAR report also notes that the Unsold Inventory Index (UII) fell to 2.8 months from 4.2 months in December. This index reflects the amount of time necessary to sell the entire inventory of homes on the market at the current sales rate. The 2.8 months is lower than in November, and lower than December of 2014. A “normal market” is usually considered to have a UII of 6-7 months, which is an indicator that we are experiencing a lower than “normal” amount of inventory.
The full report has been release on California Association of Realtors Newsstand. It contains, charts, graphs, and a complete rundown of California home Sales numbers broken down county-by-county, and you can read it here:
“In line with our forecast, California’s housing market experienced strong sales and price growth throughout last year, with the median price increasing 6.2 percent for the year as a whole to reach $474,420 in 2015,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Looking forward, we expect the foundation for the housing market to remain strong throughout the year, with moderate increases in home sales and prices, but headwinds of tight housing supply and low affordability will remain a challenge.”
Home Prices Supported By Low Inventory
Home prices are currently being buoyed by our lack of inventory. This is good for Sellers, but there are many who believe that the cost of a home in most areas of California is still a tad above the level of comfort new buyers need to enter the market. Time will tell, of course, and it may be that a bit more of a readjustment on the price side will be necessary to completely balance the market. However, activity is still strong and the market appears healthy overall, notwithstanding a few minor areas of imbalance.
California Home Sales.