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 percent from a year ago. It was the fourth consecutive month of gains in median home price at the state level, CAR said.
In a separate report on local markets based on data from CAR and DataQuick Information Systems, new and resale median home and condo prices fell year-over-year in all but 20 of 376 communities analyzed.
Although sales of single-family homes were up sharply from a year ago, they were down 6 percent from May to June. Home sales have posted 10 months of year-over-year gains, CAR said.
The median price of an existing condo was $263,250, a 10.2 percent increase from May to June, but still down 20.3 percent from a year ago.
Condo sales picked up 12.2 percent from May to June and were up 27 percent from a year ago, CAR said.
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