California Real Estate Update: Sept. 2014

by David Bartels on October 29, 2014

In Short: Higher prices + tough lending standards + declining affordability = slowing sales.

September 2014:

  • California single-family home and condominium sales fell 5.6% percent from August levels
  • Sales were at the lowest for a September since 2007
  • Distressed properties were 16.6% of the total compared with 23% in September 2013 and 55.2% in September 2011
  • Median price was down 1.3% from August to $385,000, but up 85% year over year
  • 11.6% of homeowners are in negative equity positions
  • Cash sales were 22.4% of the total, down from a high of 40% in August, 2011
  • Flip sales (homes resold in 6 months or less) have declined 34.2% this year, comprising 3.5% of the total. Flip sales peaked in October 2012 at 5.1% of the total
  • Foreclosure sales increased 11.2% for the month but are down 12.8% for the year
  • Notices of Default are down 12% since September 2012

Home Sales Since 2007

CASeptemberSales California Real Estate Update: Sept. 2014

Year Over Year Home Sales

SeptemberY o YSales California Real Estate Update: Sept. 2014

Median Sale Price vs. Sale Volume

SeptemberMedian California Real Estate Update: Sept. 2014

We can expect a further slowing of the market through the Winter months as fewer prospective buyers qualify for a typical home.  However, by Spring lenders will likely develop new products that help make homes affordable.  That is what has happened in the past when affordability became an issue in the housing market.

Much thanks to the  folks at Property Radar for providing the excellent graphs!

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