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Calif. home sales enter spring in slump

Posted by Mehran Aram on Wed, May 29, 2019 @ 17:05 PM

Home sales in California failed to enter the spring home buying season with any momentum as buyer demand continues to be met with affordability challenges. The California Association of Realtors reported that closed escrow sales of existing, single-family detached homes in the state were 4.8 percent lower in April than they were last year.

“Weak buyer demand, largely prompted by elevated home prices, is playing a role in the softening housing market,” said C.A.R. President Jared Martin. “However, with low interest rates, cooling competition and an increase in homes to choose from, buyers can take advantage of a more balanced housing market.”

The seasonally adjusted annualized rate of home sales was 396,760. This is what would be the total number of homes sold during 2019 if sales maintained their current pace throughout the year. Last month’s sales figures are the ninth consecutive month under 400,000.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

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Topics: home sales, California Association of Realtors, California Home Sales, Affordability, Affordability Challenges, Low Interest Rates