The home-sale price in California experienced a recovery in February after the lowest sales point experienced in more than 10 years during January, as reported in a recent report from the California Association of Realtors (CAR). The annual sale of homes in February was the greatest it has been within the past six months. The growth for monthly sales was the highest it has been since January 2011, according to a report by the association.
“Lower interest rates and stabilizing home prices motivated would-be buyers to get off the fence in February,” said Jared Martin, president of CAR. “With mortgage rates reaching their lowest point in a year, housing affordability improved as buyers’ monthly mortgage payments became more manageable. Instead of the double-digit growth rates that we observed a few months ago, monthly mortgage payments increased by 2.7 percent, the smallest increase in the last 12 months.”
CAR reported in January that the price of homes in California had declined for the eighth straight month.
As of February 2019, the median single-family home price in California was $534,140, as compared to December 2018, when the reported cost was $557,600.
Also in December 2018, the reported median sold price of existing single-family homes in the Central Valley was $317,500; Sacramento was at $364,500. In Calaveras County, the median sold price was $310,000, whereas it was $258,950 for Tuolumne. The average time for a home to remain on the market during that time was 61.5 days for Calaveras County, 65 days in Tuolumne County, 25 days in Sacramento, and 27 days as a whole for the Central Valley.
Showing the upward trend last month, the average median selling price of an existing single-family home for the Central Valley was $320,000, with Sacramento coming in at $360,000. Calaveras County increased higher than average, with the average median price coming in at $340,000 as of February, while Tuolumne County increased to $299,000.
Information is not yet available for Amador County for 2019.
The average time a home stayed on the market in February was 51 days for Calaveras County, 97 days for Tuolumne County and 27 days for Sacramento. For the Central Valley, the median time on the market stayed somewhat consistent to what it was in December at 29 days.
“While February’s sales rebound is welcome news, the market will likely remain constrained as sellers and buyers sort through the realities of today’s market,” said CAR Senior Vice President and Chief Economist Leslie Appleton-Young. “With the market about to kick off its home-buying season, buyers have a window of opportunity in the upcoming months as interest rates remain stable, there are more properties on the market to consider, and prices are more attractive.”
Comparing on a year-to-year basis, the quantity of sales decreased by 11.4 percent in Sacramento and 7.5 percent in Tuolumne County, and increased by 4.7 percent in Calaveras County. The Central Valley, overall, saw a decrease of 6.30 percent in sales.