State showing signs of a soft housing market

Sales of existing single-family homes in California in April totaled 267,880, a decline of 4.7 percent from March and a drop of 36.1 percent year-over-year, according to a report.

Statewide, the median home price last month was $815,340, up three percent from March and down 7.8 percent from April 2022, the California Association of Realtors reported.

That was the first time in six months the median price topped $800,000. At the same time, sales remained below 300,000 units for the seventh straight month.

Single-family home sales were down 37.4 percent in April compared with the first four months of 2022.

The Los Angeles-based association’s sales figures are annualized, meaning they show how California’s housing market would perform if home sales maintained their April pace for the rest of the year. They are also adjusted to account for seasonal factors.

As usual, the relatively soft market is being blamed on higher interest rates and not enough houses being built.

“A surge in borrowing costs, as mortgage rates, surpassed seven percent in late February and early March, also contributed to the market weakness,” said Jordan Levine, the association’s senior vice president, in a statement. “Many transactions that opened in those two months were closed in April.”

In the Inland Empire, single-family home sales in April were down 6.6 percent month-over-month and 36.1 percent year-over-year. The median price of a home – $565,000 – was up 1.8 percent from March but down 2.6 percent from one year earlier, the association reported.