Lake County’s housing market started the New Year with the historic short-term drop in sales prices experienced in almost every January for the past 15 years but shows a substantial year-over-year increase.
Closed escrow sales of homes in Lake County totaled 45 units in January, according to information collected from the Lake County Multiple Listing Service (MLS). Sales in January were down 12 percent from 51 in December and up 32 percent from 34 in January 2014. Home sales have been below the 400,000 level since November 2013. The statewide sales figure represents what would be the total number of homes sold during 2015 if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
“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,” said California Association Realtors (C.A.R.) President Chris Kutzkey. “Due to the region’s strong income and job growth, the Bay Area was the least affected by the housing crisis. But strong housing demand and tight supply in the region also have caused home prices to appreciate at a faster rate than many regions in California, leading to a slide in housing affordability in the area, which in turn, has resulted in a more pronounced slowdown in market activity in recent months.”
The median price of a Lake County home fell 2.5 percent from December’s median price of $160,000 to $156,000 in January but was up 16.9 percent from the revised $133,450 recorded in January 2014. The countywide median home price has been higher on a year-over-year basis for more than two years, but price gains have narrowed significantly in the past year. 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 the statewide unsold inventory index in January jumped to the highest level in nearly three years, the increase can be attributed in large part due to the drop in sales,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Overall, active listings statewide showed a near double-digit increase from last January, but supply conditions weren’t all positive at the regional level. While both the Southern California and Central Valley regions showed a clear improvement in their inventory levels when compared to last year, housing supply in the Bay Area remains a concern as active listings declined more than 5 percent in the region, further illustrating the region’s lack of affordable homes for sale.”
Other key facts from Lake County’s Januaryresale housing report include:
• Lake County’s housing inventory was 6.4 months in January, down from 9.2 months for the same period last year. Housing inventory loosened throughout much of the state in January, though the San Francisco Bay Area continued to be hamstrung by tight inventory. The available supply of existing, single-family detached homes for sale statewide rose from 3.3 months in December to 5 months in January. The index was 4.3 months in January 2014. The index tells 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 was extended in January, up from 94 days in December to 109 days in January and from 75 days in January 2014.
• Mortgage rates fell again in January, with the 30-year, fixed-mortgage interest rate averaging 3.67 percent, down from 3.86 percent in December and down from 4.43 percent in January 2014, according to Freddie Mac. The January 2014 average 30-year fixed rate was the lowest since May 2013, just before the Federal Reserve announced its intention to taper the bond buying program. Adjustable-mortgage interest rates also dipped in January, averaging 2.38 percent, down from 2.40 percent in December and down from 2.55 percent in January 2014.
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.
