California home sales lose momentum in February ahead of Spring selling season

California home sales fell in February, but housing inventory increased as sellers gear up for the spring home-buying season, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 361,210 units in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  February marked the fourth straight month that sales were below the 400,000 level and the seventh straight decline on a year-over-year basis.  Sales in February slipped 0.7 percent from a revised 363,930 in January but were down 13.7 percent from a revised 418,520 in February 2013.  The statewide sales figure represents what would be the total number of homes sold during 2014 if sales maintained the February pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

<h2>California home sales: sellers ready for Spring home buying season</h2>

Pending California Home Sales“The slower sales in February reflects diminished housing affordability after three years of solid price increases and interest rates that are nearly a full percentage point higher than a year ago,” said C.A.R. President Kevin Brown.  “With the interest rate difference alone, home buyers this year would have to pay $150 more per month on their mortgage payment than last year, a substantial amount for many would-be home buyers trying to get into the market.”

The statewide median price of an existing, single-family detached home declined 1.6 percent from January’s median price of $410,990 to $404,250 in February.  February’s price was 21.3 percent higher than the revised $333,180 recorded in February 2013, marking two full years of consecutive year-over-year price increases and the 20th straight month of double-digit annual gains, as sales of higher priced homes made up a larger share of the market compared to a year ago.  The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“Supply conditions in the housing market have shown some improvement since the end of last year, except for the lowest price range where the inventory for distressed properties is depleted.  In the mid-priced range of $300,000-$750,000, which covers nearly half of all home sales, inventory is up 27 percent, while the supply of high-end homes – properties priced at or above $1 million, also is up 13 percent from a year ago,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “The improvement in these prime price ranges will benefit trade-up buyers who are expected to dominate the market in 2014, as many of them will be searching for homes in these price categories.”

<h2>Other key facts from C.A.R.’s February 2014 California Home Sales resale housing report include</h2>:

• Housing inventory improved in February, with the available supply of existing, single-family detached homes for sale rising in February to 4.7 months, up from January’s Unsold Inventory Index of 4.3 months. The index was 3.6 months in February 2013.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered typical in a normal market.

• The median number of days it took to sell a single-family home fell to 40 days in February, down from 44.3 days in January but up from a revised 34.3 days in February 2013.

• Mortgage rates were lower in February, with the 30-year, fixed-mortgage interest rate averaging 4.30 percent, down from 4.43 percent in January but up from 3.53 percent in February 2013, according to Freddie Mac.  Adjustable-mortgage interest rates in February averaged 2.54 percent, down from 2.54 in January and down from 2.61 percent in February 2013.

Slides (click on link to open):

• Unsold Inventory by price range. 
• Change in sales by price range.
• Share of sales by price range.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only.  County sales data are not adjusted to account for seasonal factors that can influence home sales.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold.  Due to the low sales volume in some areas, median price changes may exhibit unusual fluctuation. The change in median prices should not be construed as actual price changes in specific homes.

<h2>February 2014 California Home Sales by County and Price Activity</h2>


(Regional and condo sales data not seasonally adjusted)

February-14 Median Sold Price of Existing Single-Family Homes Sales
State/Region/County Feb-14 Jan-14   Feb-13   MTM% Chg YTY% Chg MTM% Chg YTY% Chg
CA SFH (SAAR) $404,250 $410,990 $333,180 r -1.6% 21.3% -0.7% -13.7%
CA Condo/Townhomes $345,430 $331,980 $272,640 r 4.1% 26.7% 6.5% -3.2%
Los Angeles Metropolitan Area $383,300 $387,740 $326,460 r -1.1% 17.4% -4.1% -12.6%
Inland Empire $260,380 $267,200 $212,300 -2.6% 22.6% 0.5% -10.8%
S.F. Bay Area $675,000 $630,470 $584,430 7.1% 15.5% -1.3% -7.7%
 
S.F. Bay Area
Alameda $627,550 $600,960 $511,790 4.4% 22.6% -10.0% -14.7%
Contra-Costa (Central County) $629,570 $608,610 $608,700 3.4% 3.4% 21.7% 22.1%
Marin $983,690 $960,000 $859,380 r 2.5% 14.5% 6.4% -12.7%
Napa $466,670 $515,620 $468,180 -9.5% -0.3% -5.7% -14.3%
San Francisco $964,670 $781,250 $750,000 23.5% 28.6% 9.0% 14.9%
San Mateo $965,000 $943,500 $800,000 2.3% 20.6% -13.1% -17.4%
Santa Clara $801,000 $731,000 $710,000 9.6% 12.8% 7.1% -9.2%
Solano $288,300 $296,120 $234,520 -2.6% 22.9% -22.4% -22.9%
Sonoma $467,860 $469,830 $384,900 -0.4% 21.6% -3.4% -8.8%
Southern California
Los Angeles $389,080 $423,570 $337,630 -8.1% 15.2% -8.9% -14.4%
Orange County $677,700 $653,850 $607,230 3.6% 11.6% -0.2% -11.8%
Riverside County $302,370 $314,070 $245,830 -3.7% 23.0% 0.7% -9.4%
San Bernardino $185,590 $190,540 $156,360 -2.6% 18.7% 0.1% -13.2%
San Diego $476,780 $479,340 $407,220 -0.5% 17.1% 8.1% -13.4%
Ventura $558,490 $533,730 $461,960 4.6% 20.9% -7.6% -13.0%
Central Coast
Monterey $500,000 $428,500 $315,000 16.7% 58.7% 2.8% -28.1%
San Luis Obispo $480,680 $455,810 $408,570 5.5% 17.6% -12.8% -7.1%
Santa Barbara $661,760 $698,860 $606,060 r -5.3% 9.2% -16.5% -27.5%
Santa Cruz $600,000 $608,620 $435,230 -1.4% 37.9% -10.7% -13.5%
Central Valley
Fresno $182,270 $184,120 $158,950 -1.0% 14.7% 7.1% -23.2%
Glenn $200,000 $180,000 $110,000 11.1% 81.8% -33.3% -63.6%
Kern (Bakersfield) $190,500 $200,000 r $170,000 r -4.8% 12.1% -10.2% -20.7%
Kings County $182,500 $160,000 $153,750 14.1% 18.7% -8.1% -9.5%
Madera $147,500 $160,000 $130,000 -7.8% 13.5% 3.8% 58.8%
Merced $181,670 $149,330 $125,290 21.7% 45.0% -12.8% -32.4%
Placer County $370,090 $360,980 $312,090 2.5% 18.6% 8.8% -14.2%
Sacramento $260,330 $242,510 $203,540 7.3% 27.9% 1.1% -19.6%
San Benito $399,000 $404,000 $330,000 -1.2% 20.9% -2.5% -9.3%
San Joaquin $234,930 $234,090 $174,680 0.4% 34.5% -14.8% -28.2%
Stanislaus $215,380 $205,900 $152,500 4.6% 41.2% -5.1% -15.4%
Tulare $163,330 $162,860 $133,870 0.3% 22.0% 17.1% -16.8%
Other Counties in California
Amador $206,250 $180,000 $225,000 14.6% -8.3% 54.2% 5.7%
Butte County $234,370 $250,000 $211,760 -6.3% 10.7% -9.5% -13.6%
Calaveras $225,500 $207,700 $199,000 8.6% 13.3% 1.7% -11.9%
Del Norte $220,000 $130,610 $162,000 68.4% 35.8% -50.0% -53.3%
El Dorado County $332,050 $335,000 $307,900 -0.9% 7.8% -10.1% -24.8%
Humboldt $218,750 $270,590 $231,670 -19.2% -5.6% -22.9% -26.0%
Lake County $170,000 $160,000 $125,000 6.3% 36.0% 61.8% 25.0%
Tuolumne $222,730 $215,380 $160,000 3.4% 39.2% -8.0% 0.0%
Mendocino $272,220 $292,860 $259,090 -7.0% 5.1% -20.0% -23.8%
Nevada $305,000 $275,000 NA 10.9% NA -1.8% NA
Plumas $118,000 $246,000 NA -52.0% NA -21.4% -56.0%
Shasta $186,000 $194,620 $180,530 -4.4% 3.0% -8.1% -32.5%
Siskiyou County $130,000 $156,670 $110,000 -17.0% 18.2% -37.9% -10.0%
Sutter $186,000 $195,000 NA -4.6% NA -1.9% NA
Tehama $237,500 $158,000 $131,670 50.3% 80.4% -40.0% -61.5%
Yolo $333,330 $289,060 $250,000 15.3% 33.3% 12.0% 0.0%
Yuba $190,000 $210,000 NA -9.5% NA -14.6% NA

r = revised
NA = not available

<h2>February 2014 California Home Sales Unsold Inventory by County and Time on Market</h2>
(Regional and condo sales data not seasonally adjusted)

February-14 Unsold Inventory Index         Median Time on Market        
State/Region/County Feb-14 Jan-14   Feb-13   Feb-14 Jan-14   Feb-13  
CA SFH (SAAR) 4.7 4.3 3.6 40.0 44.3 34.3 r
CA Condo/Townhomes 3.9 4.0 3.2 39.8 47.3 33.5
Los Angeles Metropolitan Area 5.0 4.5 3.8 48.0 50.7 40.8 r
Inland Empire 5.3 5.1 4.0 48.0 49.8 38.7
S.F. Bay Area 3.2 2.8 3.1 36.1 47.1 41.5
 
S.F. Bay Area
Alameda 3.1 2.3 2.6 48.7 64.3 57.0
Contra-Costa (Central County) 3.0 3.1 2.6 49.2 58.7 58.0
Marin 4.1 3.8 4.1 29.8 67.1 61.0
Napa 5.9 5.1 5.4 51.5 93.9 73.7
San Francisco 3.4 3.3 4.0 24.7 33.3 24.7
San Mateo 2.9 2.1 2.9 20.8 22.8 20.0
Santa Clara 2.5 2.4 2.4 19.8 22.7 20.9
Solano 3.5 2.6 3.3 37.7 42.5 44.1
Sonoma 3.8 3.5 4.3 50.6 57.7 63.4
Southern California
Los Angeles 4.6 4.0 3.3 43.6 46.6 36.5
Orange County 5.1 4.6 3.9 56.6 62.0 49.8
Riverside County 5.6 5.3 3.9 49.0 51.6 40.2
San Bernardino 4.8 4.8 4.1 45.7 46.4 38.7
San Diego 5.0 5.2 4.3 29.9 35.0 34.7
Ventura 5.2 4.4 5.2 58.3 61.4 54.2
Central Coast
Monterey 5.5 5.5 3.8 40.2 33.8 28.3
San Luis Obispo 5.9 4.9 5.0 47.2 46.3 37.5
Santa Barbara 6.3 4.8 3.7 r 31.0 45.8 54.5
Santa Cruz 3.7 3.2 3.6 49.9 43.9 34.5
Central Valley
Fresno 5.8 6.0 3.9 31.8 31.1 26.4
Glenn 9.5 5.6 2.8 98.3 61.0 55.2
Kern (Bakersfield) 4.0 3.4 r 3.0 r 30.0 29.0 21.0 r
Kings County 4.4 4.1 3.3 54.4 55.5 55.2
Madera 3.9 3.6 5.2 47.9 31.0 25.7
Merced 4.6 3.6 2.5 29.6 31.0 24.7
Placer County 4.2 4.3 2.8 26.5 39.7 24.1
Sacramento 3.8 3.7 2.3 25.7 27.0 21.2
San Benito 3.3 2.9 2.1 41.9 25.2 23.3
San Joaquin 3.8 3.3 2.6 25.4 25.8 23.0
Stanislaus 3.9 3.5 2.5 26.1 23.8 21.7
Tulare 5.9 6.9 4.0 40.4 45.0 28.5
Other Counties in California
Amador 4.7 6.8 6.2 36.8 49.1 94.6
Butte County 5.5 5.0 4.3 44.2 63.6 54.9
Calaveras 7.2 7.1 NA 75.0 66.5 NA
Del Norte 20.9 9.9 10.9 159.0 98.5 112.0
El Dorado County 6.1 5.4 4.1 46.4 53.1 44.4 r
Humboldt 9.3 6.8 5.7 52.8 57.8 73.1
Lake County 6.5 10.1 9.4 84.0 80.3 95.8
Tuolumne 7.8 7.1 6.7 86.4 45.5 31.0
Mendocino 9.0 7.1 6.8 70.7 126.8 121.0
Nevada 7.7 5.6 NA 46.5 62.0 NA
Plumas 24.1 22.2 r 10.9 106.0 234.0 NA
Shasta 7.1 6.1 2.7 r 55.2 39.5 41.8 r
Siskiyou County 16.7 10.3 15.1 110.3 75.5 84.2
Sutter 3.4 3.4 NA 21.5 35.0 NA
Tehama 12.9 7.6 4.9 70.7 73.4 56.4
Yolo 4.2 4.3 3.5 28.1 22.3 23.1
Yuba 5.5 4.7 NA 42.0 20.0 NA
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