Home sales slightly improved in May as the housing market momentum continued to be solid as the spring home-buying season marked higher year-over-year home sales and prices for the third straight month, according to information gathered from the Lake County Multiple Listing Service (MLS).
Home sales rose above the 70 mark in May for the second straight month since and were the second highest level in nearly two years. Closed sales of homes in Lake County in totaled 73 units in May, according to the MLS.
The May figure was up 1.4 percent from the 72 homes sold in April. Home sales were up 8.9 percent from 62 in May a year ago though, and the countywide sales figure so far has outpaced last year by more than 17.7 percent.
“The spring home-buying season continues to be strong, especially in areas where insufficient housing supply is less of an issue,” said California Association of Realtors (C.A.R.) President Chris Kutzkey. “With mortgage interest rates edging up recently and an imminent increase in rates by the Federal Reserve, housing affordability concerns will be heightened but may also prompt prospective buyers to feel a sense of urgency to enter the market.”
The median price of a Lake County home went up in May from both the previous month and year for the third consecutive month. The median home price was up 2.6 percent from $199,765 in April to $205,000 in May. May’s median price was 22.5 percent higher than the $167,295 recorded in May 2014. 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.
“A healthy growth rate in home prices is an essential ingredient to a sustainable housing market recovery,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “With the statewide median price increasing at a pace more in line with the historical norms since late 2014, regional markets across the state are finally showing sales improvements this year.”
Other key points from Lake County’s May resale housing report include:
• As sales continued to improve from last year, the number of active listings is staying fairly consistent compared to the previous year, keeping the supply of homes on the market flat. The May Unsold Inventory Index was slightly higher than the 6.10 months reported in April. The index, which indicates the number of months needed to sell the supply of homes on the market at the current sales rate, stood at 6.41 months in May 2014. 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 fell in May, down from 81 days in April to 65 days in May and 79 days in May 2014.
• According to C.A.R.’s newest housing market indicator measuring sales-to-list price ratio, properties are again generally selling below the list price, except in the San Francisco Bay Area, where a lack of homes for sale is pushing sales prices higher than original asking prices. The statewide measure suggests that homes are selling at a median of 99 percent of the list price, essentially flat compared to a ratio of 98.8 percent at the same time last year. The Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 107.3 percent, up from 104.9 percent a year ago.
• Mortgage rates increased in May, with the 30-year, fixed-mortgage interest rate averaging 3.84 percent, up from 3.67 percent in April but down from 4.19 percent in May 2014, according to Freddie Mac. Adjustable-mortgage interest rates edged up in May, averaging 2.49 percent, up slightly from 2.46 in April and 2.43 percent in May 2014.
Ray Perry is the 2013 Realtor of the Year for Lake County and works for CPS Country Air Properties. He can be reached at 277-8000.
