CALIFORNIA HOUSING MARKET KICKS OFF YEAR HIGHER IN JANUARY

California’s housing market started the year on a high note, following up on December’s strong showing with higher sales both on a monthly and yearly basis in January, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 420,100 units in January, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2017 if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The January figure was up 2.1 percent from the 411,430 level in December, and up 4.4 percent compared with home sales in January 2016 of a revised 402,220. The month-to-month gain was the first December- to-January increase since 2012, which is an encouraging sign.

“California’s housing market continues to be defined by the higher-priced, coastal markets and the less expensive, inland areas that still offer access to major employment centers,” said C.A.R. President Geoff McIntosh. “For example, eroding affordability and tight housing inventory are pushing buyers away from the core Bay Area markets of San Francisco, San Mateo, and Santa Clara and into less expensive bedroom communities, such as Contra Costa, Napa, and Solano. In Southern California, an influx of buyers from coastal employment areas into the Inland Empire drove healthy year-over-year sales in Riverside and San Bernardino.”

Making sense of the story
• The median price of an existing, single-family detached California home fell below the $500,000 mark for the first time since March 2016, but home prices remain seasonably strong. 
• The median price was down 3.8 percent from a revised $508,870 in December to $489,580 in January. 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.
• January’s median price was up 4.8 percent from the revised $467,160 recorded in January 2016, a slightly slower pace than the 5.6 percent increase averaged last year.
• Since 2011, price declines from December to January have usually ranged from -11.7 percent to as little as -4.6 percent, but January’s 3.8 percent monthly smaller price decline suggests that price pressure remains relatively robust and could translate into additional price growth as the spring and summer home-buying seasons near.

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http://www.car.org/aboutus/mediacenter/newsreleases/2017releases/jan2017sales