California Home Sales Lose Momentum in February as Housing Supply Continues to Loosen, C.A.R. Reports

Business Wire

LOS ANGELES--(BUSINESS WIRE)--

California home sales fell in February, but housing inventory increased as sellers gear up for the spring home-buying season, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 361,210 units in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. February marked the fourth straight month that sales were below the 400,000 level and the seventh straight decline on a year-over-year basis. Sales in February slipped 0.7 percent from a revised 363,930 in January but were down 13.7 percent from a revised 418,520 in February 2013. The statewide sales figure represents what would be the total number of homes sold during 2014 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

“The slower sales in February reflects diminished housing affordability after three years of solid price increases and interest rates that are nearly a full percentage point higher than a year ago,” said C.A.R. President Kevin Brown. “With the interest rate difference alone, home buyers this year would have to pay $150 more per month on their mortgage payment than last year, a substantial amount for many would-be home buyers trying to get into the market.”

The statewide median price of an existing, single-family detached home declined 1.6 percent from January’s median price of $410,990 to $404,250 in February. February’s price was 21.3 percent higher than the revised $333,180 recorded in February 2013, marking two full years of consecutive year-over-year price increases and the 20th straight month of double-digit annual gains, as sales of higher priced homes made up a larger share of the market compared to a year ago. 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.

“Supply conditions in the housing market have shown some improvement since the end of last year, except for the lowest price range where the inventory for distressed properties is depleted. In the mid-priced range of $300,000-$750,000, which covers nearly half of all home sales, inventory is up 27 percent, while the supply of high-end homes – properties priced at or above $1 million, also is up 13 percent from a year ago,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The improvement in these prime price ranges will benefit trade-up buyers who are expected to dominate the market in 2014, as many of them will be searching for homes in these price categories.”

Other key facts from C.A.R.’s February 2014 resale housing report include:

  • Housing inventory improved in February, with the available supply of existing, single-family detached homes for sale rising in February to 4.7 months, up from January’s Unsold Inventory Index of 4.3 months. The index was 3.6 months in February 2013. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.
  • The median number of days it took to sell a single-family home fell to 40 days in February, down from 44.3 days in January but up from a revised 34.3 days in February 2013.
  • Mortgage rates were lower in February, with the 30-year, fixed-mortgage interest rate averaging 4.30 percent, down from 4.43 percent in January but up from 3.53 percent in February 2013, according to Freddie Mac. Adjustable-mortgage interest rates in February averaged 2.54 percent, down from 2.54 in January and down from 2.61 percent in February 2013.

Slides:

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes may exhibit unusual fluctuation. The change in median prices should not be construed as actual price changes in specific homes.

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February 2014 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)
   
February 2014   Median Sold Price of Existing Single-Family Homes   Sales
State/Region/County   Feb. 2014   Jan. 2014       Feb. 2013       MTM% Chg   YTY% Chg   MTM% Chg   YTY% Chg
Calif. Single-family (SAAR)   $ 404,250   $ 410,990       $ 333,180   r   -1.6 %   21.3 %   -0.7 %   -13.7 %
Calif. Condo/Townhomes   $ 345,430   $ 331,980       $ 272,640   r   4.1 %   26.7 %   6.5 %   -3.2 %
Los Angeles Metro Area   $ 383,300   $ 387,740       $ 326,460   r   -1.1 %   17.4 %   -4.1 %   -12.6 %
Inland Empire   $ 260,380   $ 267,200       $ 212,300       -2.6 %   22.6 %   0.5 %   -10.8 %
San Francisco Bay Area   $ 675,000   $ 630,470       $ 584,430       7.1 %   15.5 %   -1.3 %   -7.7 %
                                     
San Francisco Bay Area                                    
Alameda   $ 627,550   $ 600,960       $ 511,790       4.4 %   22.6 %   -10.0 %   -14.7 %
Contra-Costa (Central Cty.)   $ 629,570   $ 608,610       $ 608,700       3.4 %   3.4 %   21.7 %   22.1 %
Marin   $ 983,690   $ 960,000       $ 859,380   r   2.5 %   14.5 %   6.4 %   -12.7 %
Napa   $ 466,670   $ 515,620       $ 468,180       -9.5 %   -0.3 %   -5.7 %   -14.3 %
San Francisco   $ 964,670   $ 781,250       $ 750,000       23.5 %   28.6 %   9.0 %   14.9 %
San Mateo   $ 965,000   $ 943,500       $ 800,000       2.3 %   20.6 %   -13.1 %   -17.4 %
Santa Clara   $ 801,000   $ 731,000       $ 710,000       9.6 %   12.8 %   7.1 %   -9.2 %
Solano   $ 288,300   $ 296,120       $ 234,520       -2.6 %   22.9 %   -22.4 %   -22.9 %
Sonoma   $ 467,860   $ 469,830       $ 384,900       -0.4 %   21.6 %   -3.4 %   -8.8 %
Southern California                                    
Los Angeles   $ 389,080   $ 423,570       $ 337,630       -8.1 %   15.2 %   -8.9 %   -14.4 %
Orange County   $ 677,700   $ 653,850       $ 607,230       3.6 %   11.6 %   -0.2 %   -11.8 %
Riverside County   $ 302,370   $ 314,070       $ 245,830       -3.7 %   23.0 %   0.7 %   -9.4 %
San Bernardino   $ 185,590   $ 190,540       $ 156,360       -2.6 %   18.7 %   0.1 %   -13.2 %
San Diego   $ 476,780   $ 479,340       $ 407,220       -0.5 %   17.1 %   8.1 %   -13.4 %
Ventura   $ 558,490   $ 533,730       $ 461,960       4.6 %   20.9 %   -7.6 %   -13.0 %
Central Coast                                    
Monterey   $ 500,000   $ 428,500       $ 315,000       16.7 %   58.7 %   2.8 %   -28.1 %
San Luis Obispo   $ 480,680   $ 455,810       $ 408,570       5.5 %   17.6 %   -12.8 %   -7.1 %
Santa Barbara   $ 661,760   $ 698,860       $ 606,060   r   -5.3 %   9.2 %   -16.5 %   -27.5 %
Santa Cruz   $ 600,000   $ 608,620       $ 435,230       -1.4 %   37.9 %   -10.7 %   -13.5 %
Central Valley                                    
Fresno   $ 182,270   $ 184,120       $ 158,950       -1.0 %   14.7 %   7.1 %   -23.2 %
Glenn   $ 200,000   $ 180,000       $ 110,000       11.1 %   81.8 %   -33.3 %   -63.6 %
Kern (Bakersfield)   $ 190,500   $ 200,000   r   $ 170,000   r   -4.8 %   12.1 %   -10.2 %   -20.7 %
Kings County   $ 182,500   $ 160,000       $ 153,750       14.1 %   18.7 %   -8.1 %   -9.5 %
Madera   $ 147,500   $ 160,000       $ 130,000       -7.8 %   13.5 %   3.8 %   58.8 %
Merced   $ 181,670   $ 149,330       $ 125,290       21.7 %   45.0 %   -12.8 %   -32.4 %
Placer County   $ 370,090   $ 360,980       $ 312,090       2.5 %   18.6 %   8.8 %   -14.2 %
Sacramento   $ 260,330   $ 242,510       $ 203,540       7.3 %   27.9 %   1.1 %   -19.6 %
San Benito   $ 399,000   $ 404,000       $ 330,000       -1.2 %   20.9 %   -2.5 %   -9.3 %
San Joaquin   $ 234,930   $ 234,090       $ 174,680       0.4 %   34.5 %   -14.8 %   -28.2 %
Stanislaus   $ 215,380   $ 205,900       $ 152,500       4.6 %   41.2 %   -5.1 %   -15.4 %
Tulare   $ 163,330   $ 162,860       $ 133,870       0.3 %   22.0 %   17.1 %   -16.8 %
Other California Counties                                    
Amador   $ 206,250   $ 180,000       $ 225,000       14.6 %   -8.3 %   54.2 %   5.7 %
Butte County   $ 234,370   $ 250,000       $ 211,760       -6.3 %   10.7 %   -9.5 %   -13.6 %
Calaveras   $ 225,500   $ 207,700       $ 199,000       8.6 %   13.3 %   1.7 %   -11.9 %
Del Norte   $ 220,000   $ 130,610       $ 162,000       68.4 %   35.8 %   -50.0 %   -53.3 %
El Dorado County   $ 332,050   $ 335,000       $ 307,900       -0.9 %   7.8 %   -10.1 %   -24.8 %
Humboldt   $ 218,750   $ 270,590       $ 231,670       -19.2 %   -5.6 %   -22.9 %   -26.0 %
Lake County   $ 170,000   $ 160,000       $ 125,000       6.3 %   36.0 %   61.8 %   25.0 %
Tuolumne   $ 222,730   $ 215,380       $ 160,000       3.4 %   39.2 %   -8.0 %   0.0 %
Mendocino   $ 272,220   $ 292,860       $ 259,090       -7.0 %   5.1 %   -20.0 %   -23.8 %
Nevada   $ 305,000   $ 275,000       NA       10.9 %   NA   -1.8 %   NA
Plumas   $ 118,000   $ 246,000       NA       -52.0 %   NA   -21.4 %   -56.0 %
Shasta   $ 186,000   $ 194,620       $ 180,530       -4.4 %   3.0 %   -8.1 %   -32.5 %
Siskiyou County   $ 130,000   $ 156,670       $ 110,000       -17.0 %   18.2 %   -37.9 %   -10.0 %
Sutter   $ 186,000   $ 195,000       NA       -4.6 %   NA   -1.9 %   NA
Tehama   $ 237,500   $ 158,000       $ 131,670       50.3 %   80.4 %   -40.0 %   -61.5 %
Yolo   $ 333,330   $ 289,060       $ 250,000       15.3 %   33.3 %   12.0 %   0.0 %
Yuba   $ 190,000   $ 210,000       NA       -9.5 %   NA   -14.6 %   NA

r = revised
NA = not available

 
February 2014 County Unsold Inventory and Time on Market
(Regional and condo sales data not seasonally adjusted)
           
February 2014 Unsold Inventory Index               Median Time on Market            
State/Region/County Feb.

2014

  Jan.

2014

    Feb. 2013     Feb. 2014   Jan. 2014   Feb. 2013    
Calif. Single-family (SAAR) 4.7   4.3     3.6     40.0   44.3   34.3   r
Calif. Condo/Townhomes 3.9   4.0     3.2     39.8   47.3   33.5    
Los Angeles Metro Area 5.0   4.5     3.8     48.0   50.7   40.8   r
Inland Empire 5.3   5.1     4.0     48.0   49.8   38.7    
San Francisco Bay Area 3.2   2.8     3.1     36.1   47.1   41.5    
                               
San Francisco Bay Area                              
Alameda 3.1   2.3     2.6     48.7   64.3   57.0    
Contra-Costa (Central Cty.) 3.0   3.1     2.6     49.2   58.7   58.0    
Marin 4.1   3.8     4.1     29.8   67.1   61.0    
Napa 5.9   5.1     5.4     51.5   93.9   73.7    
San Francisco 3.4   3.3     4.0     24.7   33.3   24.7    
San Mateo 2.9   2.1     2.9     20.8   22.8   20.0    
Santa Clara 2.5   2.4     2.4     19.8   22.7   20.9    
Solano 3.5   2.6     3.3     37.7   42.5   44.1    
Sonoma 3.8   3.5     4.3     50.6   57.7   63.4    
Southern California                              
Los Angeles 4.6   4.0     3.3     43.6   46.6   36.5    
Orange County 5.1   4.6     3.9     56.6   62.0   49.8    
Riverside County 5.6   5.3     3.9     49.0   51.6   40.2    
San Bernardino 4.8   4.8     4.1     45.7   46.4   38.7    
San Diego 5.0   5.2     4.3     29.9   35.0   34.7    
Ventura 5.2   4.4     5.2     58.3   61.4   54.2    
Central Coast                              
Monterey 5.5   5.5     3.8     40.2   33.8   28.3    
San Luis Obispo 5.9   4.9     5.0     47.2   46.3   37.5    
Santa Barbara 6.3   4.8     3.7   r 31.0   45.8   54.5    
Santa Cruz 3.7   3.2     3.6     49.9   43.9   34.5    
Central Valley                              
Fresno 5.8   6.0     3.9     31.8   31.1   26.4    
Glenn 9.5   5.6     2.8     98.3   61.0   55.2    
Kern (Bakersfield) 4.0   3.4   r 3.0   r 30.0   29.0   21.0   r
Kings County 4.4   4.1     3.3     54.4   55.5   55.2    
Madera 3.9   3.6     5.2     47.9   31.0   25.7    
Merced 4.6   3.6     2.5     29.6   31.0   24.7    
Placer County 4.2   4.3     2.8     26.5   39.7   24.1    
Sacramento 3.8   3.7     2.3     25.7   27.0   21.2    
San Benito 3.3   2.9     2.1     41.9   25.2   23.3    
San Joaquin 3.8   3.3     2.6     25.4   25.8   23.0    
Stanislaus 3.9   3.5     2.5     26.1   23.8   21.7    
Tulare 5.9   6.9     4.0     40.4   45.0   28.5    
Other California Counties                              
Amador 4.7   6.8     6.2     36.8   49.1   94.6    
Butte County 5.5   5.0     4.3     44.2   63.6   54.9    
Calaveras 7.2   7.1     NA     75.0   66.5   NA    
Del Norte 20.9   9.9     10.9     159.0   98.5   112.0    
El Dorado County 6.1   5.4     4.1     46.4   53.1   44.4   r
Humboldt 9.3   6.8     5.7     52.8   57.8   73.1    
Lake County 6.5   10.1     9.4     84.0   80.3   95.8    
Tuolumne 7.8   7.1     6.7     86.4   45.5   31.0    
Mendocino 9.0   7.1     6.8     70.7   126.8   121.0    
Nevada 7.7   5.6     NA     46.5   62.0   NA    
Plumas 24.1   22.2   r 10.9     106.0   234.0   NA    
Shasta 7.1   6.1     2.7   r 55.2   39.5   41.8   r
Siskiyou County 16.7   10.3     15.1     110.3   75.5   84.2    
Sutter 3.4   3.4     NA     21.5   35.0   NA    
Tehama 12.9   7.6     4.9     70.7   73.4   56.4    
Yolo 4.2   4.3     3.5     28.1   22.3   23.1    
Yuba 5.5   4.7     NA     42.0   20.0   NA    

r = revised
NA = not available

Contact:
CALIFORNIA ASSOCIATION OF REALTORS
Lotus Lou, (213) 739-8304
lotusl@car.org

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