The California Association of Realtors is reporting that the California housing market is performing more strongly than it did last year. While it slowed down a bit when comparing August to previous months, the market is still clearly moving in the right direction and at a healthy pace. Nonetheless, depending on a number of unpredictable factors, it is still possible that the California housing market will slow down before the end of the year. If it continues in the trajectory that it has been moving, on the other hand, 2015 is shaping up to be a very good year for the state of California real estate.
California Home Sales on the Rise
According to the California Association of Realtors, sales of existing, single-family homes throughout the state totaled 431,800 in August. While this represents a 3.8 percent decrease when compared to the 448,900 that were sold in July, it represents a 9.3 percent increase when compared to August of 2014. Furthermore, August represents the fifth month in a row where statewide sales were more than 400,000, which is the highest level of sales the state has seen since October 2012. The California Association of Realtors further reports that the year-to-year change in figures was higher than the six month average increase of 8.6 percent that took place from February 2015 to July 2015.
The sale of condo and town homes has also increased, with this part of the market experiencing a ten percent increase when compared to last year. In addition, condo and town home sales are 6.6 percent ahead of year-to-date features.
An Increase in Prices
The California Association of Realtors has also found that the median price of existing, single-family detached homes throughout the state went up to $493,420 in August, representing a one percent increase when compared to the $488,470 figure that was posted in July. The price is also 2.5 percent higher than the $481,240 median price that was recorded for August 2014. As the smallest year-over-year statewide median price gain posted in three and a half years, these increases represent a healthier pace than the state has previously experienced. The slowdown in price gains further indicates that home prices within the California housing market are stabilizing.
While supply constraints within the Bay Area will likely continue to push prices up in that area, these prices will be counterbalanced by increased sales in more affordable areas such as the Central Valley and the Inland Empire. Nonetheless, with many experts predicting higher mortgage rates in the near future coupled with stock market volatility, the market’s current momentum could be impacted. If the trend continues as it has been, however, the state is on track to posted stronger than expected home sales for the year.
Clearly, the state of the California real estate market has a direct effect on luxury real estate within the state. If you are interested in purchasing luxury real estate within the Los Angeles region or surrounding, contact our team of professionals to help you find the perfect home to suit your needs. We specialize in high-end real estate within Southern California’s most exclusive communities.
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(all data current as of 7/24/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.