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California housing recovery continues in July as median home price sets another record high, C.A.R. reports

– Existing, single-family home sales totaled 437,890 in July on a seasonally adjusted annualized rate, up 28.8 percent from June and up 6.4 percent from July 2019.

– July’s statewide median home price was $666,320 up 6.4 percent from June and up 9.6 percent from July 2019.

– Year-to-date statewide home sales were down 10 percent in July.

LOS ANGELES, Aug. 17, 2020 /PRNewswire/ — California’s housing market continued to recover as home sales climbed to their highest level in more than two and a half years in July, while setting another record-high median home price, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. 

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 437,890 units in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2020 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

July’s sales total climbed above the 400,000 level for the first time since February 2020, before the COVID-19 crisis depressed the housing market, and was the highest level in more than two and a half years. July sales rose 28.8 percent from 339,910 in June and were up 6.4 percent from a year ago, when 411,630 homes were sold on an annualized basis. July marked the first time in five months that home sales posted an annual gain.

“A housing market trifecta of strong pent-up demand, record-low interest rates and a renewed interest in the value of homeownership bolstered July’s home sales,” said 2020 C.A.R. President Jeanne Radsick, a second-generation REALTOR® from Bakersfield, Calif. “With this year’s delayed start of the homebuying season due to the pandemic, we expect home sales to remain robust in August and September, extending the season later than what’s typical.”

With home sales continuing to recover in July and sales of higher-priced properties bouncing back faster than the rest of the market, the statewide median price hit a new high after setting a record just in June. California’s median home price reached $666,320 in July, jumping 6.4 percent from June’s $626,170 and 9.6 percent from $607,990 in July 2019. The monthly price increase was higher than the historical average price change from June to July and, in fact, was the highest ever recorded for a June-to-July change. 

A change in the mix of sales was one primary factor that pushed the median price higher in July, as sales of higher-priced properties continued to outpace sales of lower-priced homes. 

Homes priced below $500,000, which made up 44 percent of total sales in the California market in June 2020, only comprised 40 percent of all sales in July 2020. Sales of million-dollar properties, on the other hand, increased in market share to 20.4 percent in the most recent month compared with 18.1 percent in June 2020. 

“Stronger sales of higher-priced properties continue to propel the statewide median home price, as those who tend to purchase more expensive homes are less impacted by the economic recession,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young.

“High demand in resort communities is another variable that’s fueling the increase in home prices, as a new wave of remote workers are leaving cities in search of more space and a healthier lifestyle in what used to be the second/vacation home market.”

Reflecting the rise in home prices, a monthly Google poll conducted by C.A.R. in early August found that 54 percent of consumers said it is a good time to sell, up from 44 percent a month ago, and up from 52 percent a year ago. Meanwhile, low interest rates continue to fuel the optimism for homebuying; 33 percent of the consumers who responded to the poll believed that now is a good time to buy a home, sharply higher than last year, when 23 percent said it was a good time to buy a home.

Other key points from C.A.R.’s July 2020 resale housing report include:

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

 

 

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SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

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