Double-digit home price increases and higher interest rates have made homes less affordable in California, leading to a drop in sales for the fourth straight month, the California Association of Realtors reported today.
“Improving home prices are a double-edged sword for the housing market. While welcomed news for homeowners and prospective sellers, diminished affordability is squeezing out many buyers and dampening their enthusiasm for home purchasing,” said 2014 CAR President Kevin Brown in a statement.
“Buyers are playing the waiting game and putting their home search on hold until prices stabilize and more inventory becomes available in the market.”
Closed sales of existing, single-family detached homes in the Golden State declined 3.4 percent month to month and 12 percent year over year in November, to a seasonally adjusted annualized rate of 387,520. That’s the lowest number of sales since July 2010, CAR said. The median home price rose 22.2 percent year over year last month, to $422,210. That was the 17th straight month of double-digit annual price gains.