Lack Of Inventory Remains An Issue

Lack Of Inventory Remains An Issue

Persistently declining for-sale home inventory helped push the median price of California homes up to its highest level in four years in August, according to a report by the CALIFORNIA ASSOCIATION OF REALTORSĀ®.

Closed sales of existing single-family homes in the Golden State also saw gains, rising 2.3 percent on an annual basis in August to a seasonally adjusted annualized rate of 511,240 units. That’s a 3.4 percent decline from July, but the fifth straight month to see a year-over-year increase.

“A lack of inventory remains an issue, as the housing supply fell more than 30 percent from last year,” said LeFrancis Arnold, the Association’s president, in a statement.

“Inventory levels are at the lowest levels we’ve seen in seven years, and we are starting to see the supply shortage conditions having a negative impact on sales in the Central Valley and the Inland Empire, where REO (real estate owned) properties are in short supply.”

For-sale inventory fell to a supply of 3.2 months at the current sales pace in August, down from a revised 3.5 months in July and a revised 5.2 months in August 2011, C.A.R. said. A supply of six months is considered to be a “normal” market where buyer and seller demand is roughly equal. Last month, only homes selling for more than $1 million were in normal territory with a supply of 6.1 months. Homes under $300,000 had the lowest inventory, with a supply of 2.8 months.

It took a median 41.1 days to sell a single-family home in August, down from 43.2 days in July and a revised 52.5 days a year ago.

The median price of an existing single-family home rose for the sixth straight month in August, up 15.5 percent year over year to $343,820. That’s a 3 percent increase from July, the largest annual price jump in more than two years, and the highest median since August 2008.

“The median price is gaining in part because of a shift in the mix of what is selling,” said CAR Chief Economist Leslie Appleton-Young in a statement. “The increasing share of sales in higher-priced coastal markets at the expense of the inventory-scare distressed markets has been the primary factor in fueling the statewide median price.”

Higher-priced markets with a “robust economy” are experiencing strong demand and posting double-digit year-over-year price increases, but sales were stagnant or declined in lower-priced markets that rely more on distressed properties, Appleton-Young said.

Sales of homes under $200,000 saw a 13.6 percent year-over-year decrease in August, while sales in every other price range rose. Homes above $500,000 saw the biggest jump, nearly 30 percent.

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Barbara Reaume

Barbara Reaume is a real estate expert working for Coldwell Banker Montecito. She started her career as a real estate agent in 1984 and offers over 3 decades of experience in real estate sales. Specialties include Montecito real estate, Santa Barbara real estate, Santa Barbara homes, real estate financing In Santa Barbara, Montecito relocation, Santa Barbara relocation, short sales and foreclosures. Do you have specific questions about buying or selling real estate in the Santa Barbara area? Ask to be setup on Barbara's email-based home search to get instant alerts on price reductions and new Santa Barbara homes for sale in the area. Contact Barbara Reaume by email ([email protected]), phone (805-610-5403) to find out the value of your home, discuss your options. Connect on Google+ https://plus.google.com/103753350598984606081/about

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