Home Prices Are Up
California home prices were close to a 4-year high in July and the pace of sales continues to grow. The median home price in July for an existing single-family home in California was $333,860 last month, up 4.2 percent from $320,540 in June and nearly 13 percent from a year ago, when the median home price in California was $296,160. This is the fifth consecutive month the median price has increased.
In our local Sacramento and Placer County market the median price for July was $176,500 and $291,670 respectively. This is an increase of 5 percent from last year for Sacramento and 10 percent for Placer County.
July's median home price was the highest since August 2008 when it was $352,730.
California home sales in July increased on an annualized basis 15.3 percent when compared to July 2011. In Placer County the number of sales increased 7.6 percent compared to a year ago. Sacramento County sales were flat from last year.
The upward movement in price is clearly being caused by a reduction of inventory. The homes available to sell were measured in 3.4 months of inventory compared to 5.6 months the year before. According to the California Association of Realtors, a 7 month inventory of homes for sale is considered normal.
As a result of the low inventory it is difficult for buyers, especially in the lower price ranges. Investors are back in force and making it particularly hard for first time buyers or homeowners who are looking to get back in a home after going through a short sale several years ago.
If you are interested in how the Sacramento area market is performing, feel free to call me at the MagnumOne Realty office in Roseville or send me an email to JulieJ@Jalone.com.