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Friday, July 16, 2021

California June Housing: Sales up 28% YoY, "Market momentum appears to be moderating"

by Calculated Risk on 7/16/2021 06:14:00 PM

The CAR reported: Despite a new record price, growth slowed and pending sales dipped for first time since May 2020, C.A.R. reports

Despite an impressive performance in the first six months of the year, the market momentum appears to be moderating with existing home sales dipping for the second month in a row, 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 436,020 in June, 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 2021 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

June home sales dipped 2.2 percent on a monthly basis from 445,660 in May but were up 28.3% percent from a year ago, when 339,910 homes were sold on an annualized basis. With strong sales growth in June, the state housing market ended the first half of the year with a year-to-date increase of 33.6 percent. Higher-priced markets continued to do well while sales of lower-priced properties remained below last year’s levels.

We’re starting to see what a difference just a slight uptick in inventory and listings can do to help lessen the buying frenzy and create a sense of normalcy,” said C.A.R. President Dave Walsh. “The market is still extremely competitive, with 70 percent of homes selling above list price; however, the number of new listings increased in June, and both the share of listings with a reduced price and median reduction amount increased, giving buyers more opportunities to purchase.”
The state housing supply condition continued to improve with active listings reaching the highest level since last October. The number of for sale properties increased 15.4 percent in June from the prior month as more homes were being listed on the market. New active listings, while still down 12.3 percent from two years ago, increased both month-over-month and year-over-year by around 8 percent in June 2021. Housing supply typically climbs during this time of the year and remains on an upward trend until late July/early August.
emphasis added
Note that inventory was up 15.4% from May to June.