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CA home prices rise as sales drop

Posted by The Aramco Group on Tue, Nov 8, 2016 @ 14:11 PM

Home sales in California dipped in September, a typical retraction following the summer. According to the latest report from PropertyRadar, single-family home and condominium sales slipped 10.4 percent from August and 6.7 percent from the same month last year.

Despite sales falling, prices held steady at $434,500 for a median home in the Golden State. This is a 6.6 percent increase from 2015 but relatively unchanged from August's figures. The rise in prices is welcomed news for existing homeowners who were previously underwater on their mortgages.

"Despite lower sales, prices continue to climb higher," said Madeline Scnapp director of Economic Research for PropertyRadar. "The silver lining in rising prices is it allows underwater homeowners to escape their negative equity prisons."

Homeowners who have experienced an increase in their home value can refinance while mortgage rates are near historic lows. Conforming no-point 30-year fixed rates are averaging 3.50 percent while the 15-year rate is near 2.75 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.