California existing-home sales – The number of single-family homes sold in June declined 21% year-over-year.
The California Association of Realtors reported that existing-home sales totaled 344,970 on a seasonally adjusted annualized rate in June, down 8.4% from May, and down 20.9% from last June. Excluding two months during the pandemic shutdown, this marked the fewest number of homes closed escrow in a month since April 2008. Existing-home sales through June are down 10.9% from the number of homes sold in the first half of 2021.
The statewide median price paid for a home in June was $863,790, up 5.4% from $819,630 in June 2021.
There was a 2.5-month supply of homes for sale in June, up from a 2.1-month supply of homes for sale in May, and a 1.7-month supply in June 2021. While up slightly a 2.5-month supply is still a low level. A normal market has a 5–6-month supply of homes on the market.
We have seen more homes come on the market in the past few weeks. Perhaps sellers feel that prices have topped out. Those listings are selling quickly if they are priced correctly. The vast majority of the homes sold are still receiving multiple offers, but they are not receiving the number of offers that they would have received a couple of months ago. We are seeing two to four offers, not twenty! The homes priced too high are sitting. Once reduced to the correct price those are selling as well, but not with the excitement and urgency a new listing gets. I expect that the number of sales will increase from the anemic number of sales we saw in June because of the increased number of new listings hitting the market. June should be the fewest number of sales we see in a month for a long time. That’s what I am seeing on the street.
The graph attached shows regional figures by county in Southern California.