California Housing Update

With about 20-yrs experience as an executive in the home building industry, we always looked to California for housing concepts, vision, design and trends. Once a housing approach gained traction, the concept moved across the country. Not so much anymore since other parts of the country have become leaders in the industry rather than followers. However, it is with interest to note that the median price of a home in California is trending UP.

Source: “California Association of Realtors March home sales and price report”

LOS ANGELES – California home sales declined in March from February’s pace, while the median home price snapped a 16-month annual price decline and posted its first year-over-year gain, the California Association of Realtors.

“While home sales were down statewide, the housing market continued to perform at a solid pace by historical standards. In fact, sales jumped significantly in most regions of the state, with many areas experiencing double-digit gains,” said CAR President LeFrancis Arnold. “Tight inventory and robust home sales, particularly in the San Francisco Bay Area, fueled the substantial increase in the March median home price.”

The statewide median price of an existing, single-family detached home jumped 9.2 percent to $291,080 in March from February’s $266,660 median price and was up 1.6 percent from a revised $286,550 recorded in March 2011. The month-to-month increase was the largest since March 2004.

“Housing inventory remains extremely tight throughout the state and at levels severely under normal market conditions,” said CAR Vice President and Chief Economist Leslie Appleton-Young.

Other key facts of CAR’s March 2012 resale housing report include:

• California’s housing inventory declined in March, with the Unsold Inventory Index for existing, single-family detached homes decreasing to 4.1 months in March, down from a revised 5.4 months in February and down from the 5.4-month supply in March 2011.

Take notice of this trend. This is important!!!