Lake County home sales volume eased slightly in May as a shortage of homes and housing affordability concerns held back would-be home buyers, according to information gathered from the Lake County Multiple Listing Service (MLS).
Meanwhile, the median home price posted higher from both the previous month and year for the seventh consecutive month and remained at its second-highest level since December 2007. The highest level was $195,250 in October – where several high-end properties sold, influencing the number.
Closed sales of homes in Lake County totaled 62 units in May, according to the MLS. May marked the 10th straight month that sales were below the 90 level and the fourth straight decline on a year-over-year basis. Sales in May dipped 6.1 percent from 66 in April and were down 28.7 percent from 87 in May 2013.
“Since last summer, the market has been transitioning to a slower pace of sales, somewhat higher inventory and less upward pressure on prices,” California Association of Realtors (C.A.R.) President Kevin Brown said. “Generally speaking, buyers are feeling less urgency to buy as affordability has become more of an issue and lending standards continue to remain tight. However, a recent surge in mortgage applications, due partially to declining interest rates, may indicate that higher housing demand can be expected in the coming months.
For the third straight month, the countywide median price of a home rose both month-to-month and year-to-year. May”s median price increased 7.3 percent from April”s median price of $156,000 to $167,250 and was up 24 percent from the revised $135,000 recorded in May 2013. The statewide median home price has increased year-over-year for the previous 27 months, marking more than two full years of consecutive year-over-year price increases and the 23rd straight month of double-digit annual gains. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
“While home price increases have tempered over the past few months, prices are still nearly 12-percent higher than a year ago, which is presenting affordability challenges to home buyers,” Leslie Appleton-Young, C.A.R. vice president and chief economist, said. “And though housing inventory is up from last year, it”s still half of what is considered normal, with some of it being overpriced. A tempering in home price increases and the recent drop in mortgage rates, however, should help spark the market in the upcoming months.”
Other key facts from Lake County”s May housing report include:
Housing inventory was improved in May, with the available homes for sale at 6.63 months. The index was 5.07 months in May 2013. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.
The median number of days it took to sell a single-family home rose to 107 days in May, up from 96 days in April but up from 122 days in May 2013.
Mortgage rates fell in May, with the 30-year, fixed-mortgage interest rate averaging 4.19 percent, down from 4.34 percent in April but up from 3.54 percent in May 2013, according to Freddie Mac. Adjustable-mortgage interest rates in May averaged 2.43 percent, down from 2.44 in April and down from 2.55 percent in May 2013.
