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california

I like this reporting – instead of speculating with the usual mumbo-jumbo about why sales are slower, Madeline states a fact:

While the price of a California home rose to a level not seen in six years, it didn’t drive buyers out of the market. In March, the median price for a home rose to $366,000, which was up $16,000 from February and marks the highest price since March 2008. Despite the high price tag, home and condominium sales were up nearly 21% for the month.

March’s sales may have been up from February’s figures, but they were still down 13.3% from March 2013.

“Despite the nice jump in March home sales, sales continue to be slower than we’ve seen since 2008,” said Madeline Schnapp, director of economic research for PropertyRadar. “The supply of lower-priced distressed properties is disappearing at a rapid clip and is not being replaced by an adequate supply of non-distressed properties.”

http://www.housingwire.com/articles/29698-california-home-prices-reach-highest-level-in-6-years-doesnt-slow-home-sales

The number of homes for sale on the lower end has dropped considerably, and where the low-inventory has the most dramatic impact – higher up hasn’t had the same problem.  Here are the number of NSDCC homes listed for sale under $600,000 in the first quarter of the year:

First Qtr.
#Listings Under $600K
Avg. LP/sf
#Listings Over $600K
Avg. LP/sf
2011
221
$293/sf
1,260
$471/sf
2012
212
$282/sf
1,058
$481/sf
2013
134
$322/sf
1,176
$508/sf
2014
55
$369/sf
1,184
$544/sf

There just aren’t as many lower-priced homes for sale.

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