Industry NewsMarkets & Economy

California housing inventories shrink

Sales pace rises 20% year-over-year in June

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The supply of existing single-family homes for sale in California dropped to 4.1 months in June as sales grew 20.1 percent from a year ago to a seasonally-adjusted annual rate of 514,110, the California Association of Realtors said.A six-month supply of homes for sale is considered a healthy balance between buyers and sellers, with anything less considered a seller's market. At the same time a year ago, CAR's unsold inventory index stood at 7.6 months.Shrinking inventories on the lower end of the market are affecting prices, with many distressed properties receiving multiple bids, CAR Chief Economist Leslie Appleton-Young said in a statement."Although another surge of foreclosures is expected later this year, demand remains strong, so the market may be able to absorb more distressed properties without significantly impacting the median price,” Appleton-Young said.At $274,740, the median price of a single-family detached home was up 4.2 percent from May to June, but down 26.4 per...