According to the California Association of Realtors, the California housing market slowed for the third consecutive month in July 2021, with home sales and prices tempering from last year’s stormy market conditions, while remaining above pre-pandemic levels.
Closed escrow sales of existing single-family homes in California totaled a seasonally adjusted annualized rate of 428,980 in July, according to information collected by CAR from more than 90 local REALTOR® and MLS associations statewide. The statewide annualized sales figure represents the total number of homes sold in 2021 if sales kept July’s pace throughout the year. It is adjusted to take into account seasonal factors that generally influence home sales.
Home sales in July were down 1.6% on a monthly basis from 436,020 in June and down 2% from a year ago when 437,890 homes were sold on an annualized basis . July’s sales level was the second highest level for July in the past six years. Despite the downward trend, home sales in California have maintained a solid 27.3 percent increase since the start of the year.
“The California housing market continues to normalize from the warm conditions we experienced at the height of the pandemic, with sales and prices moderating as we slowly move from peak home buying season to winter. fall, ”said CAR President Dave Walsh. “The market remains strong, however, as sales were still the second highest level for a July for the past six years, and the statewide median price continues to exceed the level of the last six years. double-digit last year. Housing supply, while improving, remains tight and competition in the market continues to be fierce, with homes off the market in record time. “
After hitting record highs in the past four consecutive months, the median home price in California fell 1% month-over-month to $ 811,170 in July, from $ 819,630 in June and up 21.7% from the $ 666,320 recorded last July. The median price in California remained above the benchmark of $ 800,000 for the fourth consecutive month.
“Despite a slight decline from its record high set in June, California’s median price remains high as supply constraints continue to exert upward pressure to support home prices,” said the CAR Vice President and Chief Economist Jordan Levine. “However, home prices are expected to come down as home inventories improve in the third quarter and the market continues to normalize during the traditional off-season.”
Other key points from CAR’s July 2021 Home Resale Report include:
- Regionally, all major regions saw lower sales compared to a year ago, when home sales started to increase as mortgage rates continued their downward trend. The Far North (-15.2%) and the Central Valley (-12%) recorded double-digit sales declines year on year, while the Central Coast (-9.7% ) fell by almost 10%. The San Francisco Bay Area (-1.4%) and Southern California (-1.4%) held up relatively well, but more affordable counties in areas like Napa (-36.9%), Solano (-14.7%) and San Bernardino (-13.2 percent) also saw sharp declines from a year ago.
- Almost three-quarters of all counties – 38 out of 51 – followed by CAR saw year-over-year decline in closed sales in July, with 26 counties down more than 10 percent in sales compared to to last year. Merced recorded the largest drop in sales from a year ago at -39 percent, followed by Calaveras (-37.1 percent) and Napa (-36.9 percent). Counties with a decline from a year ago recorded an average decline of -17.6% in July.
- Thirteen counties recorded a year-over-year increase in sales in July, up from 44 counties in June. Glenn (57.1%) recorded the largest increase in sales from a year ago, followed by Del Norte (27.3%) and Yuba (18.6%). San Francisco (15.2%) and Santa Clara (11.3%) also saw double-digit sales growth in July.
- Median prices in all major regions remained high, but only the Far North region reached a new record in July. All regions saw double-digit increases in median price, with the Far North (25.7%) posting the largest year-over-year increase, followed by the San Francisco Bay Area (23.9%), Southern California (22.1%), Central Valley. (19.7%) and Central Coast (10.8%).
- Almost all of the countries – 49 out of 51 – followed by the CAR have seen year-over-year price growth, with 46 of them reporting double-digit rate increases from last year. Tehama recorded the largest price increase of 52.5%, followed by Siskiyou (38.3%) and Mendocino (34.0%). Thirteen counties set a new record for median prices in July. Mariposa (-10.1%) and Santa Barbara (-6.9%) were the only counties to have recorded a drop in prices compared to the same month last year.
- The state of public housing supply continued to improve, with active listings reaching the highest level since last October. The number of properties for sale increased 15.4% in July from the previous month as more homes were listed. Despite an increase in the total number of active listings in July, new listings added during the month edged down for the first time after increasing year over year for four consecutive months. New active listings increased 0.7% from June, but were down 0.9% year-on-year in July 2021. Housing supply generally increases at this time of year and remains on a low. upward trend until end of July / beginning of August.
- The imbalance between supply and demand continued to heat up the market, with many buyers offering sales above the asking price. In July, more than 70% of homes sold for above their asking price, making it the tenth consecutive month since September 2020 that more than half of homes sold for above their asking price.
- Almost four of the five counties reported by CAR have declined in active registrations since last July, and 28 of them have fallen to double digits compared to the same period last year. Marin continued to have the largest decline in active listings, plunging 52.2% year-on-year, while San Luis Obispo (-46.3%) and Plumas (-44.6%) recorded the second and the third decrease from a year ago. Ten counties posted an increase in active registrations in July, with Stanislaus (28.5%), Lassen (19.1%) and San Bernardino (17.8%) being the only counties to increase double digits from the same month a year ago.
- The unsold inventory index (UII) improved slightly from 1.7 months in June to 1.9 months in July, but remained well below last year’s level of 2.1 months. The index shows the number of months it would take to sell the supply of homes in the market at the current pace of sales.
- The median number of days it took to sell a single-family home in California remained stable from June to 8 days in July, but was down from 17 days in July 2020.
- CAR’s statewide list price to list price ratio was 103.8% in July and 100% in July 2020.
- The statewide average price per square meter for an existing single-family home has remained high. At $ 394, July’s price per square foot was another all-time high. The price per square foot was $ 304 in July a year ago.
- The 30-year fixed mortgage interest rate averaged 2.87% in July, up from 2.98% in July 2020, according to Freddie Mac. The five-year adjustable mortgage interest rate averaged 2.49%, up from 3.02% in July 2020.