The California housing market is expected to start cooling off despite still being in the height of the summer home buying season.
"As we enter the second half of the year, we are likely to see some slowdown in sales that extends beyond the typical seasonality change," said California Association of Realtors President Geoff McIntosh. "While the rate of closed sales indicates that California's housing market has continued to move forward, tight supply continued to push up prices and lower affordability."
Statewide sales figures declined 1.1 percent from June to July as the median home price in California came in at $553,260 during the second quarter. Currently, just 29 percent of California households can afford to purchase a median priced home.
Tight inventory is expected to continue to constrain the housing market as CAR's Unsold Inventory Index remains tight. The index, which measures the number of months needed to sell the current supply of homes on the market, was a paltry 3.2 months in July.
Today, conforming no-point 30-year fixed mortgage rates averaging 3.875 percent while 15-year rates are near 3.125 percent.
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