The Federal Reserve’s interest rate cut last month helped lead to the first year-over-year sales gain and highest sales level in 15 months. July’s sales were up 5.6% from June and 1.1% from July 2018. According to C.A.R. President Jared Martin, “Mortgage rates that dipped to the lowest level in nearly three years has helped reduce monthly mortgage payments for the past five consecutive months, giving buyers more purchasing power.” While it’s good news that home sales have increased, California is still challenged by affordability issues, especially in high cost areas.
Other key takeaways from C.A.R.’s July report are as follows:
- Median home prices increased in Southern California and the Central Valley, while the Central Coast and Bay Area slightly declined from previous year.
- In Southern California, median home prices increased in every county.
- Active listings decreased by 2.1%.
- The median days on market increased from 19 days in June to 21 days in July. It took 18 days in July 2018.