DataMarkets & Economy

Blame uninspiring home sales on low inventory, CAR says

CAR report shows home sales dropped 3.2 percent since last May
  • Sales of single-family detached properties (with closed escrow) dropped by 3.2 percent year-over-year, according to CAR.
  • May showed a 0.6 percent rise in sales from April, reaching a seasonally adjusted annualized rate of 410,090 homes.
  • California’s median price grew from $509,590 to $518,760 month-over-month.
  • May 2016's home supply of 3.4 months was around 40 percent below the long-term average.

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Lack of inventory, both affordable and overall, remains an issue for California homebuyers, and price continues to climb in response. For the second straight month, median home price grew above $500,000 while California home sales dropped annually, according to the California Association of Realtors' (CAR) statewide report. Sales of single-family detached properties dropped by 3.2 percent year-over-year. The effects of California’s tight market appear to be hitting the pricier ZIP codes more dramatically. “Affordable areas, such as the Inland Empire and Central Valley, where housing supply is relatively more abundant, are outperforming the San Francisco Bay Area, where thin housing availability is hampering home sales,” CAR President Pat “Ziggy” Zicarelli said in a statement. “In fact, eight of that region’s nine counties experienced a sales decline from the previous year.” CAR The short-term progress of California home sales is somewhat more flatter...