The Lake County housing market cooled in August, but still posted higher year over year for the sixth straight month according to information gathered from the Lake County Multiple Listing Service (MLS).
Home sales remained above the $200,000 mark in August for the fourth consecutive month. Closed sales of homes in Lake County totaled 79 units in August, according to the MLS.
The August volume figure was down 5.2 percent from the 84 in July but up 16.3 percent compared with home sales in August 2014 of 73. The year-to-year change was higher than the six-month average increase of 9.5 percent observed from February to July.
Home prices are increasing at a healthy pace; however, only time will tell how the Valley Fire effects the real estate market here in Lake County. Several of the homes that were in escrow and others that sere still for sale are no longer on the market which may create a demand for housing in areas that were not involved in the fire. There is a large demand for rentals at least on a temporary bases until the homes that were destroyed by the fire are replaced.
The median price of a Lake County home declined 5.2 percent in August to $200,000 from $211,000 in July. August’s median price was 16.3 percent higher than the $172,000 recorded in August 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.
“While California housing indicators remain strong for now, the anticipation of higher mortgage rates and reduced affordability, coupled with global instability and stock market volatility may create an environment of uncertainty that could impact the current momentum in the market,” said California Association of Realtors (C.A.R.) Vice President and Chief Economist Leslie Appleton-Young. “We’re on track to post stronger than expected home sales for 2015, with the last quarter moderating but still solid”
Other key points from Lake County’s August housing report include:
• While sales continued to improve from last year, the number of active listings has started to drop from the previous year. Active listings for Lake County decreased 3.7 percent from July and dropped 5.2 percent from August 2014.
• The August Unsold Inventory Index remained the same six months as July’s but was down from seven months in August 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 edged up in August to 89 days compared with 90 days in July but was down from 102 days in August 2014.
• Mortgage rates dipped in August, with the 30-year, fixed-mortgage interest rate averaging 3.91 percent, down from 4.05 percent in July and 4.12 percent in August 2014, according to Freddie Mac. Adjustable-mortgage interest rates, however, ticked up in August, averaging 2.60 percent, up from 2.52 in July and 2.37 percent in August 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.
