State home sales still struggling

Sales of existing single-family homes in California remained below 300,000 in June, the ninth consecutive month the state’s housing market has failed to surpass that number.

Closed escrow sales totaled 277,490 during the sixth month of the year, down 4.1 percent from May and 19.7 percent year-over-year, according to data released July 19 by the California Association of Realtors.

The sales number is annualized, meaning it reflects what would be the number of homes sold during 2023 if sales maintained their June pace for 12 months. That statistic also accounts for seasonal factors that influence home sales.

Statewide, the median home price last month was $838,260, up slightly from May but down 2.4 percent from June 2022. It was also the third consecutive month the median price topped $800,000.

Sales were down 33 percent during the first six months of this year compared with the first half of 2022.

Higher interest rates and not enough listings are keeping home sales in check, but the state housing market remains relatively strong, said Jennifer Branchini, president of the Los Angeles-based trade association.

“California’s housing market has improved since the winter and appears to have found its footing as sales declined at the slowest pace in over a year,” Branchini said in a statement. “The demand for housing continues to outpace the availability of homes for sale.”

In the Inland Empire, the median price of a detached home in June – $570,000 – represented a 2.6 percent drop from June 2022, while sales declined 18.7 percent [annualized] during that time, the association reported.