According to the California Association of Realtors, the California real estate market slowed for the third consecutive month in July 2021 as home sales and prices eased from the tight market conditions seen over the past year, while staying above pre-pandemic levels.
Closed escrow sales of existing single-family homes in California totaled a seasonally adjusted annualized rate of 428,980 in July, according to information collected by CAR from more than 90 local REALTOR® Associations and MLSs statewide. The annualized statewide sales figure represents what the total number of homes sold would be in 2021 if sales maintained the July pace throughout the year. It is adjusted to take into account seasonal factors that generally influence home sales.
Home sales in July fell 1.6% on a monthly basis from 436,020 in June and 2% from a year ago, when 437,890 homes were sold on an annualized basis. The July sales level was the second highest July level in six years. Despite the downward trend, home sales in California have maintained a solid 27.3% year-to-date increase.
“The California real estate market continues to normalize from the scorching conditions we experienced at the height of the pandemic, with sales and prices moderating as we slowly transition from peak home buying season into the fall. “said CAR President Dave Walsh. “The market remains strong, however, as sales were consistently the second-highest level for a month of July in the past six years, and the statewide median price continues to hover above the last year’s level in double digits. Housing supply, while improved, remains tight and competition in the market is still fierce, with homes flying off the market in record time.”
After setting records for the past four consecutive months, the median home price in California fell 1% month over month to $811,170 in July, down from $819,630 in June and up 21.7% from the $666,320 recorded last July. The median price in California remained above the $800,000 benchmark for the fourth consecutive month.
“Despite down slightly from its record high set in June, California’s median price remains elevated as supply constraints continue to exert upward pressure to support home prices,” the report said. CAR Vice President and Chief Economist, Jordan Levine. “However, home prices are expected to decline as housing inventory improves in the third quarter and the market continues to normalize during the traditional off-season.”
Other key takeaways from the July 2021 CAR Resale Homes Report include:
- Regionally, all major regions saw sales decline from a year ago, when home sales began to rise as mortgage rates continued their downward trend. Far North (-15.2%) and Central Valley (-12%) saw double-digit year-over-year sales declines, while Central Coast (-9.7%) fell nearly by 10%. The San Francisco Bay Area (-1.4%) and Southern California (-1.4%) held up relatively well, but more affordable counties in areas such as Napa (-36.9%) , Solano (-14.7%) and San Bernardino (-13.2%). percent) also saw steep declines from a year ago.
- Nearly three-quarters of all counties – 38 of 51 – tracked by the CAR saw a year-over-year decline in closed sales in July, with 26 counties down more than 10% in sales from Last year. Merced saw the biggest drop in sales from a year ago at -39%, followed by Calaveras (-37.1%) and Napa (-36.9%). Counties with a decline from a year ago saw an average decline of -17.6% in July.
- Thirteen counties reported year-over-year sales increases in July, compared to 44 counties in June. Glenn (57.1%) had the largest increase in sales over last year, followed by Del Norte (27.3%) and Yuba (18.6%). San Francisco (15.2%) and Santa Clara (11.3%) also saw double-digit sales growth in July.
- Median prices in all major regions remained high, but only the Far North region set a new record high in July. All regions saw double-digit increases in median price, with the Far North (25.7%) rising the most year-over-year, followed by the San Francisco Bay Area (23.9%). %), Southern California (22.1%), Central Valley (19.7%) and Central Coast (10.8%).
- Almost all – 49 out of 51 – counties tracked by CAR saw year-over-year price growth, with 46 of them reporting a double-digit increase in the rate from a year ago. Tehama recorded the highest price increase of 52.5%, followed by Siskiyou (38.3%) and Mendocino (34.0%). Thirteen counties set new record median prices in July. Mariposa (-10.1%) and Santa Barbara (-6.9%) were the only counties with lower prices compared to the same month last year.
- The state of housing supply in the state has continued to improve, with active listings hitting their highest level since last October. The number of properties for sale rose 15.4% in July from the previous month as more homes came on the market for sale. Despite an increase in total active listings in July, new listings added during the month dipped slightly for the first time after increasing year-over-year for four consecutive months. New active listings were up 0.7% from June, but fell 0.9% year-over-year in July 2021. Housing supply typically increases at this time of year. year and remains on an upward trend until the end of July/beginning of August.
- The imbalance between supply and demand continued to heat the market, with many buyers offering to sell above the asking price. In July, more than 70% of homes sold above their asking price, making it the tenth consecutive month since September 2020 that more than half of homes sold above their asking price.
- Nearly four out of five counties reported by CAR saw their active rosters decline from last July, and 28 of them fell by double digits from the same period last year. Marin continued to see the biggest drop in active listings, plunging 52.2% year over year, while San Luis Obispo (-46.3%) and Plumas (-44.6%) posted the second and third largest declines from a year ago. Ten counties posted an increase in active registrations in July, with Stanislaus (28.5%), Lassen (19.1%) and San Bernardino (17.8%) being the only counties to increase by double digits compared to the same month a year ago.
- The Unsold Inventory Index (UII) improved slightly from 1.7 months in June to 1.9 months in July, but remained well below last year’s level of 2.1 months . The index indicates the number of months it would take to sell the supply of homes in the market at the current rate of sales.
- The median number of days it took to sell a single-family home in California held steady from June at 8 days in July, but was down from 17 days in July 2020.
- CAR’s statewide sell-to-list price ratio was 103.8% in July and 100% in July 2020.
- The statewide average price per square foot for an existing single-family home remained high. At $394, July’s price per square foot was another all-time high. The price per square foot was $304 in July a year ago.
- The 30-year fixed mortgage interest rate averaged 2.87% in July, down from 2.98% in July 2020, according to Freddie Mac. The five-year adjustable mortgage interest rate averaged 2.49%, down from 3.02% in July 2020.