Industry News

JUNE HOME SALES AND PRICE REPORT

For release:
July 17, 2017

In the height of the spring homebuying season, California's housing market shrugs off housing shortage as sales and median home price bound higher in June

- Existing, single-family home sales totaled 443,150 in June on a seasonally adjusted annualized rate, up 3.3 percent from May and 2.4 percent from June 2016.

- June's statewide median home price was $555,150, up 0.9 percent from May and up 7.0 percent from June 2016.

- The median number of days on the market fell to 22.4 days in June from 27.1 days a year ago, the fastest pace since May 2004, when it took 21.9 days to sell a home.

- At the regional level, the San Francisco Bay Area, Inland Empire, and Los Angeles metro area all registered year-to-year sales increases of 6.1 percent, 10.4 percent, and 8.3 percent, respectively.

LOS ANGELES (July 17) – Amid the lowest housing inventory levels of the year, existing home sales in California took off in June to their highest pace in nearly four years as existing home sales and median home price recorded strong gains on both a monthly and annual basis for the second straight month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Closed escrow sales of existing, single-family detached homes in California not only remained above the 400,000 benchmark for the 15th consecutive month, they totaled a seasonally adjusted annualized rate of 443,150 units in June, 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 2017 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The June figure was up 3.3 percent from the revised 428,890 level in May and up 2.4 percent compared with home sales in June 2016 of a revised 432,880. Year-to-date sales are running 3.2 percent ahead of last year's pace.

"A lack of available homes for sale continues to be the largest single factor influencing California's housing market," said C.A.R. President Geoff McIntosh. "With active listings 13.5 percent lower than last June, we've now experienced a full two years in which active listings have fallen on a year-over-year basis and the lowest inventory level this year. Would-be sellers aren't listing their homes as many of them would also face an inventory challenge if they were to turn around and buy another property."

The statewide median price remained above the $500,000 mark for the fourth straight month and reached the highest level since August 2007. The median price was up 0.9 percent from a revised $550,080 in May to reach $555,150 in June, and was 7.0 percent higher than the revised $518,830 recorded in June 2016. 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 June home sales improved at a healthy pace, the growth in sales was primarily in the mid- to higher-end price ranges. In fact, sales in the lower price ranges were down significantly as a tight supply of affordable homes continues to plague the market and impede the sales of starter homes," C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. "This factor has disproportionately pushed prices higher at the lower end of the market, leading to eroding affordability that either prevents or delays first-time buyers from getting on the housing ladder."

Other key points from C.A.R.'s June 2017 resale housing report include:

• The June sales increase was wide reaching as every major region in the state posted an increase over the previous month and year. The Inland Empire experienced the largest year-over-year sales gain with a 10.4 percent increase in existing home sales from last June, followed by an increase of 8.3 percent in the Los Angeles Metro Area, and a 6.1 percent rise in the San Francisco Bay Area.

• New statewide active listings have declined for a full two years straight in June, falling 13.5 percent from a year ago.

• The increase in sales, coupled with the double-digit decline in active listings, lowered June's available housing supply. C.A.R.'s Unsold Inventory Index fell from 2.9 months in May to 2.7 months in June. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate. The index stood at 3.2 months in June 2016.

• At the county level, 39 of 51 reported counties experienced a drop in the unsold inventory index compared to a year ago. San Mateo (1.3 months), Santa Clara (1.4 months), and Alameda (1.6 months) counties had the lowest inventory, followed by San Francisco (1.7 months) and Contra Costa (1.9 months) counties.
• The median number of days it took to sell a single-family home was unchanged from May at 22.4 days but was down from 27.1 days in June 2016.

• C.A.R.'s sales-to-list price ratio* was 100 percent of listing prices statewide in June, 100 percent in May, and 99.5 percent in June 2016.

• The average price per square foot** for an existing, single-family home statewide was $270 in June, $267 in May, and $252 in June 2016.
• San Francisco County had the highest price per square foot in June at $909/sq. ft., followed by San Mateo ($848/sq. ft.), and Santa Clara ($662/sq. ft.). Counties with the lowest price per square foot in June included Del Norte ($114/sq. ft.), Lassen ($131/sq. ft.), and Siskiyou ($133/sq. ft.).

• Mortgage rates continued to dip further since the beginning of the year. The 30-year, fixed-mortgage interest rate averaged 3.90 percent in June, down from 4.01 percent in May but up from 3.57 percent in June 2016, according to Freddie Mac. The five-year, adjustable-rate mortgage interest rates edged up in June to an average of 3.14 percent from 3.12 percent in May but was up from 2.78 percent in June 2016.

Graphics (click links to open):

Calif. home sales highest in four years.
Calif. median home price highest since 2007.
Sales at lower end impacted by low inventory.
Calif. price per square foot highest since 2007.
Calif. sales to list price ratio.

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 39 counties.

Leading the way?® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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June 2017 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

June-17 Median Sold Price of Existing Single-Family Homes Sales
State/Region/County Jun-17 May-17 Jun-16 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
CA SFH (SAAR) $555,150 $550,080 r $518,830 r 0.9% 7.0% 3.3% 2.4%
CA Condo/Townhomes $451,450 $440,890 $413,260 r 2.4% 9.2% 5.1% 2.0%
Los Angeles Metro Area $500,240 $488,720 $473,670 r 2.4% 5.6% 8.6% 8.3%
Inland Empire $346,380 $340,710 $319,100 1.7% 8.5% 9.7% 10.4%
San Francisco Bay Area $908,740 $899,730 $841,960 1.0% 7.9% 10.4% 6.1%
San Francisco Bay Area
Alameda $900,000 $862,000 $803,000 4.4% 12.1% 11.9% 4.8%
Contra-Costa $660,000 $653,000 $625,000 1.1% 5.6% 13.9% 8.2%
Marin $1,272,500 $1,315,000 $1,218,500 -3.2% 4.4% 7.4% 6.0%
Napa $685,000 $673,250 $619,000 1.7% 10.7% 3.3% -8.0%
San Francisco $1,469,000 $1,501,680 $1,350,000 -2.2% 8.8% 3.3% -5.6%
San Mateo $1,433,750 $1,480,000 $1,306,250 -3.1% 9.8% 10.4% 9.4%
Santa Clara $1,182,500 $1,200,000 $1,050,000 -1.5% 12.6% 8.1% 9.4%
Solano $420,000 $415,000 $390,000 1.2% 7.7% 6.3% -1.9%
Sonoma $627,250 $625,000 $608,000 0.4% 3.2% 16.6% 10.8%
Southern California
Los Angeles $548,220 $492,040 $502,190 11.4% 9.2% 8.2% 8.5%
Orange County $795,000 $795,000 $754,000 0.0% 5.4% 4.0% 5.6%
Riverside County $385,000 $375,000 $360,000 2.7% 6.9% 6.6% 8.7%
San Bernardino $274,330 $272,200 $245,220 0.8% 11.9% 15.5% 13.4%
San Diego $612,750 $605,000 $560,000 1.3% 9.4% 5.7% 6.1%
Ventura $666,520 $657,890 $662,500 r 1.3% 0.6% 22.2% 1.0%
Central Coast
Monterey $624,500 $617,000 $537,000 1.2% 16.3% 19.3% 2.2%
San Luis Obispo $556,000 $569,000 $525,000 -2.3% 5.9% -2.8% -7.3%
Santa Barbara $767,500 $725,000 $742,000 5.9% 3.4% 8.5% 28.9%
Santa Cruz $860,000 $875,000 $800,000 -1.7% 7.5% 46.7% 20.0%
Central Valley
Fresno $260,000 $250,000 $241,000 4.0% 7.9% 10.9% 7.0%
Glenn $210,000 $200,000 $205,000 5.0% 2.4% 13.6% -3.8%
Kern $229,450 $230,000 $239,700 -0.2% -4.3% 15.1% 0.5%
Kings $230,000 $211,000 $207,000 9.0% 11.1% 12.5% 25.6%
Madera $279,000 $255,000 $230,380 9.4% 21.1% 40.0% -4.9%
Merced $250,100 $243,500 $213,500 2.7% 17.1% -2.8% -9.2%
Placer $472,000 $460,000 $430,000 2.6% 9.8% 1.1% -0.6%
Sacramento $347,000 $342,100 $329,000 1.4% 5.5% 5.7% -0.7%
San Benito $535,000 $520,000 $511,500 2.9% 4.6% 21.3% -13.6%
San Joaquin $340,000 $331,950 $315,000 2.4% 7.9% 10.3% 11.0%
Stanislaus $289,000 $290,000 $276,000 -0.3% 4.7% 2.2% -1.6%
Tulare $225,450 $225,000 $210,000 0.2% 7.4% 13.1% 17.4%
Other Calif. Counties
Amador $337,500 $350,000 $319,000 -3.6% 5.8% -18.6% -5.9%
Butte County $306,500 $308,000 $275,000 -0.5% 11.5% -0.6% -7.8%
Calaveras $310,000 $295,000 r $315,000 5.1% -1.6% 0.0% -3.5%
Del Norte $165,000 $220,000 $198,750 -25.0% -17.0% -18.8% -50.0%
El Dorado County $499,000 $469,000 $461,550 6.4% 8.1% 14.0% -3.4%
Humboldt $302,500 $289,500 $284,000 4.5% 6.5% 5.9% -7.7%
Lake $259,500 $240,000 $259,000 8.1% 0.2% 2.1% 18.1%
Lassen $193,000 $192,500 $166,000 0.3% 16.3% 66.7% -7.4%
Mariposa $300,000 $271,000 $264,000 10.7% 13.6% 0.0% 5.3%
Mendocino $445,000 $410,000 $350,000 8.5% 27.1% -19.0% -34.7%
Mono $482,850 $627,500 $664,250 f -23.1% -27.3% -16.7% 0.0%
Nevada $380,000 $389,000 $352,000 -2.3% 8.0% 1.3% -3.8%
Plumas $297,000 $285,000 $270,000 4.2% 10.0% 52.9% 48.6%
Shasta $269,900 $255,000 $243,000 5.8% 11.1% 17.6% 5.1%
Siskiyou County $235,000 $211,500 $215,000 11.1% 9.3% -13.0% 20.5%
Sutter $277,000 $283,000 $251,000 -2.1% 10.4% 10.3% -10.3%
Tehama $187,500 $203,000 $235,000 -7.6% -20.2% -7.7% 11.6%
Tuolumne $287,000 $299,000 $245,000 -4.0% 17.1% 12.8% 22.2%
Yolo $445,000 $453,450 $399,900 -1.9% 11.3% 10.0% 15.5%
Yuba $275,470 $255,570 $250,000 7.8% 10.2% 23.6% 23.6%

r = revised
NA = not available

June 2017 County Unsold Inventory and Time on Market
(Regional and condo sales data not seasonally adjusted)

June-17 Unsold Inventory Index Median Time on Market
State/Region/County Jun-17 May-17 Jun-16 Jun-17 May-17 Jun-16
CA SFH (SAAR) 2.7 2.9 3.2 22.4 22.4 27.1
CA Condo/Townhomes 2.2 2.4 2.7 r 21.2 21.0 27.3
Los Angeles Metro Area 2.9 3.2 3.6 r 24.6 24.5 43.9 r
Inland Empire 2.9 3.2 3.7 26.4 27.1 45.2
San Francisco Bay Area 1.8 2.1 2.3 20.4 20.0 21.1
San Francisco Bay Area
Alameda 1.6 1.7 2.1 17.8 17.7 17.7
Contra Costa 1.9 2.1 2.2 18.6 18.6 19.0
Marin 2.4 2.6 2.5 27.4 26.2 27.7
Napa 3.8 3.8 3.9 48.8 43.9 47.5
San Francisco 1.7 1.9 2.0 21.2 19.9 24.3
San Mateo 1.3 1.7 2.0 r 17.6 17.5 18.3
Santa Clara 1.4 1.7 2.1 r 17.9 17.6 18.6
Solano 2.3 2.3 2.7 32.7 32.0 34.1
Sonoma 2.7 3.0 3.1 39.4 35.7 41.5
Southern California
Los Angeles 2.7 3.0 3.2 22.5 22.3 38.8
Orange 3.0 3.1 3.6 23.5 22.2 50.5
Riverside 2.8 3.2 3.6 26.8 28.1 48.9
San Bernardino 3.0 3.4 3.9 25.8 25.5 37.1
San Diego 2.5 2.6 3.1 20.3 20.4 21.4
Ventura 4.1 5.0 4.8 r 44.0 46.4 50.2 r
Central Coast
Monterey 3.5 4.2 3.9 r 24.3 24.0 24.9
San Luis Obispo 3.8 3.6 3.9 23.2 23.7 27.7
Santa Barbara 3.7 4.0 4.5 25.4 24.0 32.5
Santa Cruz 2.9 4.0 3.7 r 20.5 21.4 20.5
Central Valley
Fresno 2.9 3.1 3.3 21.5 22.8 25.1
Glenn 3.6 3.7 3.2 28.9 40.7 41.9
Kern 2.9 3.3 3.3 24.5 25.1 26.1
Kings 2.7 3.0 3.2 27.1 23.8 25.9
Madera 4.4 6.4 4.9 24.3 45.5 62.0
Merced 3.0 2.7 2.7 21.8 23.4 25.2
Placer 2.3 2.2 2.6 20.2 19.3 20.8
Sacramento 2.0 2.0 2.4 18.3 18.3 18.7
San Benito 3.1 3.7 2.8 r 22.8 23.0 25.5
San Joaquin 2.2 2.3 2.7 20.2 20.2 21.3
Stanislaus 2.5 2.4 2.6 20.5 21.1 20.3
Tulare 3.1 3.5 3.3 26.6 26.8 28.2
Other Calif. Counties
Amador 5.6 3.8 5.0 23.5 29.5 24.1
Butte 3.0 2.9 3.4 22.2 19.3 27.4 r
Calaveras 5.4 4.8 5.3 27.8 27.1 44.0
Del Norte 13.0 9.4 5.8 126.4 80.3 100.7
El Dorado 4.1 4.2 3.9 24.6 23.9 27.8
Humboldt 5.1 5.0 3.9 23.7 23.4 23.3
Lake 4.9 4.6 6.0 26.4 37.8 66.6
Lassen 7.2 10.9 NA 68.3 64.6 85.9
Mariposa 4.2 4.2 5.1 33.9 26.0 115.2
Mendocino 7.1 5.8 5.6 57.4 72.6 56.1
Mono 11.7 8.4 NA 121.0 130.7 125.8
Nevada 3.5 3.2 3.5 21.1 24.0 22.9
Plumas 7.3 10.4 12.7 87.4 125.4 75.5
Shasta 3.8 4.3 4.1 23.8 23.7 28.2
Siskiyou 6.2 5.1 8.2 32.8 31.0 45.5
Sutter 2.5 2.4 2.0 20.6 22.0 24.5
Tehama 4.8 4.3 5.3 46.8 39.7 55.7
Tuolumne 5.3 5.0 6.6 31.6 41.6 38.3
Yolo 2.0 2.2 2.5 19.3 19.6 20.3
Yuba 2.0 2.3 2.6 20.9 20.9 19.4

r = revised
NA = not available




C.A.R.?S INNOVATORS WORKSHOP ANNOUNCES FINALISTS

For release:
July 13, 2017

Initiative seeks to drive innovative real estate products, services, and solutions

Los Angeles (July 13) – The CALIFORNIA ASSOCIATION OF REALTORS®' (C.A.R.) Innovators Workshop was launched in 2016 to drive further innovation of products, services, and solutions that create efficiencies, improve productivity, and help REALTORS®, brokerages, and other real estate professionals do their jobs and serve their clients better, smarter, and more efficiently.

Several dozen innovators have already submitted proposals to C.A.R. under the program, and finalists were selected at live C.A.R. Business Technology Forum sessions earlier this year.

The first finalist under the program, Centriq, is a new app that enables the easy transfer of knowledge from the home seller to the buyer in a real estate transaction. In addition, it aggregates everything buyers need to know about their new homes in one place -- from user's manuals and appliances, to "how to" videos, and even recall alerts and manufacturers' recommended maintenance schedules. Customized specifically to each home, Centriq helps consumers easily track and manage the ongoing maintenance of their homes and allows them to move in with confidence, eliminating many post-sale questions. Centriq is now offered to C.A.R. members as an exclusive C.A.R. Business Products partner.

C.A.R.'s most recent Innovators Workshop finalist is Roofshoot, a mobile app and tool to help real estate professionals easily generate quality videos about themselves, their listings, neighborhoods, and interesting spots within their neighborhoods. All videos link back to the agent's profile on the video-based marketplace, roofshoot.com. C.A.R. will explore opportunities for collaboration once Roofshoot launches later this month.

C.A.R. wants to hear from innovative REALTORS®, brokers, real estate industry gurus, engineers, software developers, and entrepreneurs alike about their ideas for transforming the way the real estate industry conducts business. Applicants do not need to be REALTORS®, but ideas should be creative and innovative; fill an unmet need in the marketplace; and have a value proposition that is easy to understand. C.A.R. will partner with applicants with the best ideas. Learn more about the C.A.R. Innovators Workshop or submit an idea here.

Leading the way in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS®(www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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HELP YOUR CLIENTS PROTECT AGAINST MORTGAGE CLOSING WIRE SCAMS

The Federal Trade Commission and C.A.R. are reminding REALTORS® that scammers sometimes use emails to rob home buyers of their closing costs and personal information.

Here's how the scam works: hackers break into the email accounts of buyers or real estate professionals to get information about upcoming real estate transactions. The hacker then sends an email to the buyer, posing as the real estate professional or title company. The bogus email says there has been a last minute change to the wiring instructions, and tells the buyer to wire closing costs to a different account. But it's the scammer's account. If the buyer takes the bait, their bank account could be cleared out in a matter of minutes.

Read how you can help your clients protect their mortgage closing.