Lake County home sales in June reached the highest volume of more than 100 for the first time since May 2012, according to information gathered from the Lake County Multiple Listing Service (MLS). Home sales in the state have risen year over year for five straight months.
Closed escrow sales of homes in Lake County totaled 109 units in June, according to the MLS. The June figure increased 49.3 percent from the 73 level in May, and 28.2 percent compared with home sales in June 2014 of 85. The year-to-year change is significantly lower than the previous six-month average increase of 30.1 percent observed from December 2014 to May.
“Home prices continue to improve but at a more moderate rate compared with the previous year,” said California Association of Realtors (C.A.R.) President Chris Kutzkey. “However, in areas such as the San Francisco Bay Area where tight inventory is fueling stiff competition and generating multiple offers, home prices are still rising at or near double-digit rates, and creating a challenging environment for potential buyers in the region.“
The median price of a Lake County home edged up in June from both the previous month and year for the fifth consecutive month. The median home price was up 2.4 percent from $205,000 in May to $209,900 in June, the highest level in more than four years. June’s median price was 11.1 percent higher than the revised $189,000 recorded in June 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.
“The housing market remained solid in June as the economy continued to pick up steam following a lackluster first quarter,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Overall, market fundamentals appear strong, and should provide some support for the market to stay above last year’s level in the upcoming quarter. Housing supply, however, is one variable that remains a concern and could have an adverse effect on the market if the inventory constraints do not improve.”
Other key points from Lake County’s June housing report include:
• The June Unsold Inventory Index declined to four months in June, down from seven months in May and six months in June 2014. 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 slightly in June to 61 days compared with 65 days in May but was up from 60 days in June 2014.
• ccording to C.A.R.’s newest housing market indicator which measures the 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, slightly up from 98.7 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 106.3 percent, up from 104 percent a year ago, but down from 107.3 percent in May.
• Mortgage rates increased in June, with the 30-year, fixed-mortgage interest rate averaging 3.98 percent, up from 3.84 percent in May and 3.16 percent in June 2014, according to Freddie Mac. Adjustable-mortgage interest rates also edged up in June, averaging 2.54 percent, up slightly from 2.49 in May and 2.40 percent in June 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.
