Following a strong first quarter start, California housing market downshifts in April. California home sales lost momentum in April, while the median home price accelerated to a near-10-year high, the Arcadia Association of REALTORS said recently.
Closed escrow sales of existing, single-family detached homes in California remained above the 400,000 benchmark for the 13th consecutive month and totaled a seasonally adjusted annualized rate of 406,300 units in April, according to information collected by the California Association of REALTORS®. The statewide sales figure represents what would be the total number of homes sold during 2017 if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The April figure was down 2.4 percent from the 416,110 level in March and down 1.7 percent compared with home sales in April 2016 of a revised 413,270.
“With pending home sales slowing over the past three months, April’s sales decline was not a surprise,” said AAR President, Sylvia Ramos. “Some sales that took place in the first quarter were likely pulled forward as homebuyers took advantage of the favorable interest rate environment and decided to purchase now before rates increase. Moving forward, the housing market may temper further as interest rates inch up and the supply of available homes for sale tightens.”
The statewide median price stayed above the $500,000 mark for the second straight month and reached the highest level since August 2007. The median price was up 3.7 percent from $517,490 in March to reach $536,750 in April, and was 5.4 percent higher than the $509,240 recorded in April 2016. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling, as well as a general change in values.