California’s housing market accelerated in April as the spring home-buying season kicked off with both higher home sales and prices for the third straight month, the Arcadia Association of Realtors® (A.A.R.) said today.
Home sales rose above the 400,000 mark in April for the first time since October 2013 to post the highest level since August 2013 according to a report released by the California Association of Realtors®. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 427,620 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The April figure was 9.2 percent higher than the revised 391,440 homes sold in March. Home sales were up 9.3 percent from a revised 391,330 in April a year ago, and the increase was the highest year-over-year change since May 2012.
“It’s encouraging that the spring home-buying season is off to such a strong start,” said 2015 A.A.R. President Joe Pacilio. “Sales activity is at the highest level in the last year and a half, and should remain solid throughout the rest of the season. We are finally seeing some of the pent-up housing demand that we talked about in the past turning into actual sales, thanks to solid job growth, record-low interest rates, and looser lending requirements.”
The median price of an existing, single-family detached California home increased in April from both the previous month and year for the third consecutive month. The median home price was up 2.8 percent from $468,550 in March to $481,760 in April, the highest level since November 2007. April’s median price was 7.4 percent higher than the revised $448,720 recorded in April 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
“While it’s a welcomed sign to see the growth in housing demand continue, the lack of supply remains a concern,” said A.A.R CEO Andrew Cooper. “The imbalance between the two sides not only intensifies market competition and pushes home prices higher, but also leads to housing affordability issues that could ultimately lower the homeownership rate if the problem persists.”
Representing local Realtors® in the San Gabriel Valley for 91 years, the ARCADIA ASSOCIATION OF REALTORS®(www.TheAAR.com) is one of the oldest trade organizations in CA. The AAR is dedicated to the advancement of professionalism in real estate and is an advocate for private property rights. A.A.R. is headquartered in Arcadia.
