After several years of appreciating values, California’s median home prices dropped slightly month over month. As I’ve been conveying for the past year, the market has been changing from a sellers market to one of neutrality.
Existing Home Sales are up a slight 1.5% month over month, but down almost 5% from the overheated market of last year.
Median Home Price dropped 2% month over month, but still up 6.6% year over year. The slowing of price appreciation has been going on since the end of last year. This is the first monthly statistic that puts the pricing into the negative column.
The increasing Median Time on the Market and dropping of the prices is a result of an increase in inventory in all price ranges, and a change in the buyer base from being heavily investor oriented, to one of traditional buyers.
The Traditional Housing Affordability Index holding up because the interest rates have been staying low, but the index does not take into account the borrower’s tighter qualifying criteria of the Dodd Frank Regulations that was implemented in January.
Real estate markets are very regionally oriented, but the California statistics are indicative of what’s transpiring in most of the metropolitan areas. Sellers need to be careful. Good properties priced well, are still moving. Properties with issues, or priced high are sitting.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth