California June Home Sales Drop Almost 10 Percent Year Over Year; Sales Pace Slowest for June in Four Years

Median Sale Price Hits New Records in Southern California and Statewide

By Andrew LePage Housing Affordability, Real Estate

California’s housing market logged its slowest June home sales in four years and the sharpest year-over-year decline in transactions – almost 10 percent – in nearly two years as the median price paid for a home statewide hit a record high.

An estimated[1] 44,718 new and existing houses and condos sold statewide in June 2018, down 1.0 percent from 45,163 sales in May 2018 and down 9.6 percent from 49,480 sales in June 2017, CoreLogic public records data show (Figure 1). The average change in sales between May and June since 2000 is an increase of 5.2 percent. Statewide sales have fallen on a year-over-year basis for two consecutive months (May sales fell 0.5 percent).

California Total June Home Sales for Each Year

June 2018 sales were 13.8 percent below the average number of homes sold in June since 2000. This June’s sales were the slowest for that month since June 2014, when 39,818 homes sold. A portion of last month’s year-over-year sales decline reflects one less business day for recording deals this June. But affordability and inventory constraints are likely the main culprits in last month’s sales slowdown.

The median price paid for all new and existing houses and condos sold across California in June 2018 rose to an all-time high of $500,000 [Figure 2], up 1.0 percent from a revised $495,000 in May 2018 and up 6.4 percent from $470,000 in June 2017. Adjusted for inflation, the June 2018 median remained 13 percent below its March 2007 peak. 

California Median Sale Price

The state’s median sale price has risen year over year for 76 consecutive months, since March 2012. The 6.4 percent year-over-year increase in the state’s median this June was the lowest for any month since April 2017, when it rose 5.9 percent.  

In the six-county Southern California[2] region a total of 22,706 new and existing houses and condos sold in June 2018, down 1.1 percent month over month from 22,948 sales in May 2018 and down 11.8 percent year over year from 25,738 sales in June 2017. The June 2018 median sale price rose to an all-time high of $536,250, up 1.2 percent month over month from $530,000 in May 2018, and up 7.3 percent year over year from $500,000 in June 2017.

Annual Change in Jun-18 Calif. Home Sales by Price Segment

In the nine-county San Francisco Bay Area[3], a total of 8,337 new and existing houses and condos sold in June 2018, down 2.2 percent month over month from 8,522 sales in May 2018 and down 9.2 percent year over year from 9,180 sales in June 2017. The median sale price was $875,000, unchanged from the record set in May 2018, and up 12.9 percent year over year from $775,000 in June 2017.

Statewide sales of homes priced below $500,000 fell 17.6 percent year over year in June, while sales below $1 million fell 13.2 percent [Figure 3]. Sales of $1 million or more rose 6.5 percent year over year, down from annual gains from 11.6 percent to 29.5 percent during the first five months of this year.  

[1] Because of late data availability, June 2018 sales were not complete in some counties.

[2] Southern California comprises San Diego, Orange, Los Angeles, Ventura, Riverside and San Bernardino counties.

[3] The San Francisco Bay Area comprises Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma counties.

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