Lake County existing home sales retreated while the median price advanced in September but both still posted higher than a year ago, according to information gathered from the Lake County Multiple Listing Service (MLS).
Home sales remained above the $200,000 mark in September for the seventh consecutive month and posted higher on a year-to-year basis for the 29th straight month. Closed sales of homes in Lake County totaled 65 units in September, according to the MLS.
The September figure was down 17.72 percent from the 79 reported in August but up 14.04 percent compared with 57 home sales in September 2014.
“While home sales continue to improve from last year, it will be interesting to see what impact the new implementation of the Consumer Financial Protection Bureau’s Know Before You Owe TILA-RESPA Integrated Disclosure, or TRID, will have on home sales in the future,” said California Association of Realtors (C.A.R.) President Chris Kutzkey. “Some sales that would have closed in October may be delayed because of longer loan processing times. In the first week of its implementation, mortgage applications have already seen a significant drop, partially due to the volume that was pulled forward prior to TRID’s effective date.”
The median price of a Lake County home increased 5.75 percent in September to $211,500 from $200,000 in August. September’s median price was 14.32 percent higher than the $185,000 recorded in September 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.
October’s prices have traditionally dipped in the last few years but because of the decrease in inventory there is more competition for the existing homes, sellers will not likely accept less for their homes. As new homes get built from funds supplied by the insurance companies the price of existing homes should stabilize in the near future.
Other key points from Lake County’s September housing report include:
• While sales continued to improve from last year, the number of active listings continued to drop from the previous year. Active listings for Lake County dropped 14.63 percent from August and decreased 14.29 percent from September 2014.
• The September Unsold Inventory Index remained at 6 months, unchanged from August but was down from 7.91 months in September 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 home edged up in September to 91 days compared with 89 days in August and was up from 59 days in September 2014.
• Mortgage rates dipped in September, with the 30-year, fixed-mortgage interest rate averaging 3.89 percent, down from 3.91 percent in August and 4.16 percent in September 2014, according to Freddie Mac. Adjustable-mortgage interest rates also slipped, averaging 2.59 percent, down from 2.60 percent in August and 2.43 percent in September 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.
