Andrew LePage with CoreLogic tells us that lower mortgage rates and flattening home prices have helped to revive California’s housing market. Sales in May 2019 nearly doubled sales in April 2019 and the decline in sales volume from last year was less than -4% for the first time since August 2018.
California’s median sale price statewide increased +0.8% compared to last year. Bay Area median sale prices decreased nearly -2% year/year and Southern California median sale prices rose just +0.2%. Adjusted for inflation, median sale prices have not returned to the price peak in March 2007 and, in fact, the May 2019 median sale price was -14.7% below 2007’s price peak.
May 2019 sales volume declined at all price points y/y but decreases were the largest at the lower price points. Take a look:
- less than $300,000 – -12.8%
- less than $500,000 – -5.3%
- +$500,000 – -2.7%
- $1M+ – -5.6%
- $2M+ – -1.8%
In the six-county Southern California region, sales volume decreased -2.7% y/y. The median sale price in May 2019 was $530,000, an increase of +0.2% y/y. There were no annual declines in sales prices in this region however, San Diego and Ventura sales prices remained constant.
In the nine-county San Francisco Bay Area, sales volume fell -2.7% y/y and the median sale price stood at $860,000, a decrease of -1.7% y/y. Sale prices in Santa Clara, San Francisco and Sonoma experienced annual declines from -2.5% – -6.0%
Bucking these declining statistics were Napa (+23.3%), Butte (+20.1%), Imperial (+16.7%) and Nevada (+5.3%.)