August Home Sales and Price Report
California’s housing market falters for fourth straight month as high home prices take toll on demand, C.A.R. reports
- Existing, single-family home sales totaled 399,600 in August on a seasonally adjusted annualized rate, down 1.8 percent from July and down 6.6 percent from August 2017.
- August’s statewide median home price was $596,410, up 0.8 percent from July and up 5.5 percent from August 2017.
- Statewide active listings rose for the fifth consecutive month, increasing 17.2 percent from the previous year.
LOS ANGELES (Sept. 17) – California’s housing market dropped below the 400,000-level sales benchmark for the first time in more than two years as high home prices and eroding affordability combined to cut into housing demand, 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 399,600 units in August, 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 2018 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
August’s sales figure was down 1.8 percent from the revised 406,920 level in July and down 6.6 percent compared with home sales in August 2017 of 427,630.
“Home sales activity remained on a downward trend for the fourth straight month as uncertainty about the housing market continues to mount,” said C.A.R. President Steve White. “Buyers are being cautious and reluctant to make a commitment as they are concerned that home prices may have peaked and instead are waiting until there’s more clarity in the market.”
The statewide median home price edged up to $596,410 in August. The August statewide median price was up 0.8 percent from $591,460 in July and up 5.5 percent from a revised $565,320 in August 2017.
“While home prices continued to rise modestly in August, the deceleration in price growth and the surge in housing supply suggest that a market shift is underway,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “We are seeing active listings increasing and more price reductions in the market, and as such, the question remains, ‘How long will it take for the market to close the price expectation gap between buyers and sellers?’”
Other key points from C.A.R.’s August 2018 resale housing report include:
• On a region wide, non-seasonally adjusted basis, the Southern California region led the state’s sales decline, falling 8.0 percent from a year ago. San Diego experienced a double-digit decline of 10.4 percent, while Orange and Los Angeles counties posted smaller declines of 9.7 percent and 8.9 percent, respectively.
• Sales in the Bay Area inched up 0.3 percent from July and declined 6.5 percent from August 2017. While Marin and Napa counties posted significant gains, they make up a small percentage of the region’s overall sales. Every other Bay Area county experienced a sales decline with San Mateo performing relatively better than the others, recording a modest 1.8 percent annual decline. San Francisco County saw a double-digit sales drop, and sales in Santa Clara County decreased 8.2 percent. Sales in Contra Costa County were down by more than 10 percent in August, while Solano and Sonoma fell by 8.9 percent and 7.7 percent, respectively.
yes5no10
REALTORS®, vote this November to protect homeownership in California
California is facing a housing crisis – and it’s getting worse. Inventory is too low and too many potential homeowners and renters are simply priced out of the market. This November, the 1176 members of the High Desert Association of Realtors® can take decisive action to protect home-ownership and private property rights in California.
Join us and the California Association of REALTORS® and vote YES on Prop 5 and NO on Prop 10.
Prop 5, the Property Tax Fairness Initiative, removes the unfair moving penalty for seniors, the severely disabled and disaster victims across the entire state while still ensuring they pay their fair share of property taxes.
Prop 10 will make California’s housing crisis worse. It’s the wrong solution for a state that desperately needs to create more affordable housing for middle class families. Seniors, veterans, both gubernatorial candidates – Democrat Gavin Newsom and Republican John Cox – and affordable housing experts all oppose Prop 10 because it will make housing less available and less affordable.
It’s absolutely critical that REALTORS® vote YES on Prop 5 and NO on Prop 10. Together, we can make our voice heard and protect our interests.
Are you registered? There are 26,239 REALTORS® across California not registered to vote. Be sure to visit on.car.org/voterreg and register, today!
For more information on the YES on Prop 5 and NO on Prop 10 campaigns, please visit: on.car.org/yes5no10.
Thank you,
Kari Leon, HDAOR President