Lower interest rates and stabilizing home prices combined to boost home sales in June, according to information gathered from the Lake County Multiple Listing Service (MLS). Lake County remains one of the few areas where home affordability is not quite the challenge as it is in the majority of the state.
Closed sales of homes in Lake County totaled 85 units in June, according to the MLS. June sales tied with May 2013 as the second highest in the past four years, the highest number was 107 reported for May 2012. Sales in June increased 38.71 percent from 62 in May and were up 16.44 percent from 73 in June 2013.
“It was good to see the activity pick up,” Lake County Association of Realtors President Rick White said. “The number of sales is encouraging and I hope to see the trend continue into July.”
“While June home sales rose at the statewide level, the market is still constrained by tight supply and low housing affordability in areas of high demand, where job growth is robust and international buyers have a strong presence,” California Association of Realtors (C.A.R.) President Kevin Brown said. “Overall, however, with inventory improving and home sales slowly moving back up, the market is more balanced, and we could see further market normalization in the upcoming months as interest rates remain at the lowest levels we”ve seen so far this year.”
The county median price of a home increased 10.88 percent from May”s median price of $167,295 to $185,000 and was up 37.04 percent from $135,000 recorded in June 2013. The countywide median home price has increased year-over-year for the previous 28 months, marking more than two full years of consecutive year-over-year price increases. 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.
One of the reasons home sales in Lake County are increasing is that investors and retirees see that Lake County is more affordable and offers a better value for the dollar than other areas of the state. Because of the demand and a historically low inventory for Lake County, home prices are increasing as well. As interest rates increase, as they generally do, home affordability will be effected here in Lake County as well.
Other key facts from Lake County”s June 2014 housing report include:
• Housing inventory edged slightly lower in June, with the available supply of homes for sale decreasing from 6.58 months in May to 5.23 months in June. The index was 5.85 months in June 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 declined in June, down from 107 days in May to 89 days in June but up slightly from 86 days in June 2013.
• Mortgage rates dipped in June, with the 30-year, fixed-mortgage interest rate averaging 4.16 percent, down from 4.19 percent in May but up from 4.07 percent in June 2013, according to Freddie Mac. Adjustable-mortgage interest rates in June averaged 2.4 percent, down from 2.43 percent in May and down from 2.6 percent in June 2013.
Ray Perry is the 2013 Realtor of the Year for Lake County and works for CPS Country Air Properties located in the Riviera Shopping Center. He can be reached at 277-8000
