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CA home sales hurt by inventory levels

Posted by The Aramco Group on Sat, Aug 20, 2016 @ 14:08 PM

California home sales took a dive last month for the first time since 2014. Year-to-date sales figures sank 4.1 percent bringing the seasonally adjusted annual rate to 415,840 units. This latest data comes from the California Association of Realtors (C.A.R.).

July's weakened numbers fall on the heels of a four-year high in June and 18 consecutive months of growth for sales of single-family detached homes statewide. According to C.A.R. the decline is directly attributable to unhealthy levels of home inventory on the market which is driving home prices beyond what would otherwise be affordable.

Within San Diego the trouble of home inventory is even worse. According to the National Association of Realtor's website, a recent report showed that the County currently only maintains a 38 day supply of homes, three times less than the national average of 96 days.

Meanwhile, these same economic factors appear to be driving mortgage rates near all-time lows with conforming no-point 30-year fixed rates averaging 3.375 percent while the 15-year rate is near 2.625 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.