California`s housing market pulls back for the 3rd straight month in July 2018.
In the midst of the peak home buying season, high home prices and rising interest rates are starting to take a major toll on home affordability.
July`s sales were down 0.9% from June and down 3.4% compared with home sales in July 2017, according to California Association of Realtors.
Statewide median home price also decreased to $591,460 in July, down 1.9% from $602,760 in June.
Could these numbers reflect a softening of the market, a market correction or maybe a market shift?
With decrease in sales, inventory is building up slowly.
Statewide we have seen 11.9% more homes on the market comparing to July 2017. This has been the greatest listings increase in more than 3 years.
In Sacramento CA, we have seen median sale price for single family residence drop from $375,000 in June 2018 to $370,000 in July 2018.
Placer County median sale price dropped from $510,000 in June 2018 to $495,000 in July 2018.
Sales in Sacramento County dropped from June to July 7.5% and July 2017 to July 2018 1.6% decrees.
Sales in Placer County have experience a drop from June to July of 18.3% and July 2017 to July 2018 3.7% decrees.
Real Estate market is always shifting, and we are at a point where the shift is becoming more clear. We do not know what tomorrow brings, but it is evident that the sentiment of the buyers is driven by fear that the market may be peaking.
Statistics provided are courtesy of www.car.org.