Good News for Both Sellers and Buyers

said on July 16th, 2015 filed under: Localism, Market Trends

I am excerpting and condensing from today’s report by Property Radar.

CALIFORNIA, JULY 15, 2015 — California single-family home and condominium sales gained 8.5 percent in June On a year-over-year basis, sales were up 16.4 percent from June 2014.

After a mediocre May, California real estate sales took off in June.   The year-over-year jump was the largest since October 2012 likely due to improving economic conditions and fear of rising interest rates this fall.

(Let me repeat that last because it is my biggest worry for both sellers and buyers:  fear of rising interest rates this fall.)

The median price of a California home in June was $415,000, the highest since November 2007(!) . The median price was up $10,000, or 2.5 percent, from $405,000 in May. Within California’s 26 largest counties, 19 counties saw median price increases while 7 experienced price decreases. The counties with the biggest median price increases were San Joaquin (+8.5 percent), San Diego (+5.7 percent) and Ventura (+5.5 percent).

On a year-over-year basis, the median price of a California home was up 5.1 percent from $395,000 dollars in June 2014. At the county level, year-over-year median price increases exceeded 5 percent in 18 of California’s 26 largest counties and 7 of those experienced double-digit price increases. The counties with the largest price increases were San Mateo (+20.0 percent), San Francisco (+14.7 percent), Sonoma (+11.5 percent) and Solano (+11.3 percent).

Despite affordability issues, strong sales in June pushed median prices higher.

Flip sales have been steadily increasing since January 2015, up 2.0% for the month and 1.3% over the past 12 months. More importantly flip says have increased 43.4% since the beginning of the year. Short sales also posted strong gains in June, up 5.7% for the month and 2.2% year-over-year. Short sales have increased 52.8% since January 2015.

Flippers and short sellers are finding plenty of willing buyersWith prices already high and moving higher, this market leaves room for investors to jump in and an attractive time to sell.”

Cash sales, at their second highest level since May 2014, were up 3.1 percent for the month and up 1.5 percent in the past twelve months. In June cash sales  represented 20.3 percent of total sales. Cash sales as a percentage of total sales remain high but have been steadily declining since reaching a peak of 40.0 percent of total sales in August 2011. Since then, cash sales are down 42.6 percent.

Foreclosure notices and sales reached their lowest levels in our records dating back to January 2007 .

The number of homeowners in a negative equity position continued downward in June thanks to rising prices . In June approximately 7.7 percent of homeowners, or 670,000, owed more than their home was worth, down 1.5 percent for the month and 39.0 percent from June 2014. We started 2015 with just over one million California homeowners underwater.

If you want to read the entire article and see all the charts, click this link:


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