AgentMarkets & Economy

Property Radar says “flat is the new black” of lack of seasonal sales growth

Slowing California home sales could have several causes
  • California's housing market showing signs of slowing, which could be seasonal, or buyer's resistance to ever-climbing prices.
  • October sales fell 2.9 percent to 35,182 from a revised 36,232 in September. Year-over-year, sales were down 1 percent from 35,541 in October 2014.
  • Price appreciation, also strong in the first half of the year and lagging of late, remains in the most affluent counties.

Are buyers finally resisting unrelenting price increases in the California home market? Or, is it just that time of year for sluggish home sales? “Flat is the new black,” said Madeline Schnapp, Director of Economic Research for Property Radar, in a statement about the group’s latest report. “Sales posted healthy increases in the first half of 2015 relative to 2014 but beginning in July, sales weakened as rising prices began to meet resistance from prospective buyers. That scenario is unlikely to change anytime soon.” It could be either, neither, or some of both. Per Property Radar, October sales fell 2.9 percent to 35,182 from a revised 36,232 in September. Year-over-year, sales were down 1 percent from 35,541 in October 2014. Year-to-date sales through October were up 6.5 percent compared to the same time period in 2014. Strong sales in the first six months of 2015 fueled that gain. According to PropertyTrack, sales is one of the few areas that has not ye...