California's existing home sales remained in a squeeze in January, with limited inventory and rising prices cutting affordability, the California Association of Realtors reported Wednesday.
Sales of single-family detached homes fell to an annualized, seasonally adjusted rate of less than 352,000 units in January, down 3.6 percent from more than 366,000 sales in December and off 2.7 percent from less than 362,000 units in January 2014, the association said.
Its monthly report also noted sharper declines in San Joaquin County, although the local figures are not seasonally adjusted. Here, existing single-family home sales based on data from the Realtors multiple-listing services totaled 363 in January, down 28 percent from 506 units in December and off 22 percent from 466 sales in January 2014.
"Despite a leveling off of home prices and continued decline in interest rates in recent months, California's housing market continues to be constrained by low housing affordability, particularly in the San Francisco Bay Area," Chris Kutzkey, association president, said in a news release.
The median price of an existing, single-family detached California home fell 5.9 percent from December's median price of $453,780 to $426,790 in January but was up 3.4 percent from the revised $412,820 recorded in January 2014. The median sales price is the point at which half of homes sold for more and half sold for less
The statewide median home price has been running higher on a year-over-year basis for more than two years. It is influenced by the types of homes selling as well as a general change in values.
In San Joaquin County, home sales prices paralleled the statewide trend, easing 1.4 percent in January to a median more than $263,000 from more than $267,000 in December, but up strongly from the $234,000 median price in January 2014.
Statewide the drop in sales was most dramatic in the lower price ranges, said Selma Hepp, association senior economist. Sales of homes priced less than $200,000 fell by 40 percent and those from $200,000 to less than $300,000 dropped 17 percent.
"There's a lack of supply in that lowest prices segment," she said, which is affecting the state and likely San Joaquin County, as well.
That puts pressure on many would-be homebuyers.
"As prices keep going up, we are seeing shrinkage in affordability," Hepp said.
©2015 The Record (Stockton, Calif.). Distributed by Tribune Content Agency
