Last month, the California Association of Realtors predicted a slow down for the state’s housing market in 2020.
According to a recent report by CoreLogic, cooling home sales are already here. In fact, August marked the fewest home sales for that month in four years.
“California home sales edged moderately lower in August, marking the twelfth month out of the last 13 in which sales were lower than a year earlier as some would-be buyers remained priced out and others stayed on the sideline, hesitant to buy near a potential price peak,” the report stated.
CoreLogic estimated that during August about 42,440 new and existing houses and condos sold in California. That number is down 0.2% from the previous month and down 2.8% from August 2018. While the number of sales declined, so did the median home price in comparison to its June 2019 peak of $509,000.
According to CoreLogic, the median price paid for all new and existing houses and condos sold statewide this August was $499,000. While this price is down 0.2% from $500,000 in July 2019, it is up 1% from the previous August, when median prices sat at $494,000.
The report stated that home sale activity normally edges higher between July and August. As stated earlier, this August was the twelfth month out of the last 13 in which sales were lower than a year earlier. The only annual gain was seen in July this year, and CoreLogic is attributing that gain to lower mortgage rates.
“The significant drop in mortgage rates in recent months has helped stoke sales by enabling many buyers to purchase homes with at least modestly lower payments than they would have faced last year,” the report stated. “While California’s median sale price was up 1% year over year this August, the state’s ‘typical mortgage payment’ – the monthly principal and interest payment on the median-priced home – fell almost 11% because of a roughly 1 percentage point decline in mortgage rates over that 12-month period.”