REAL ESTATE TOPICS...CALIFORNIA MARCH EXISTING HOME SALES (Talking Points)

MARCH EXISTING HOME SALES AND MEDIAN PRICE ACCELERATE FROM PREVIOUS MONTH AND YEAR
Source: C.A.R.

California home sales rose from both the previous month and year to post the highest sales pace in six months, while strained housing supplies continued to push home prices higher, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Making sense of the story

• Existing, single-family home sales totaled 415,220 in March on a seasonally adjusted annualized rate, up 5.5 percent from February and 5.7 percent above March 2015.

• March’s statewide median home price was $483,280, up 8.9 percent from February and up 4 percent from March 2015.

• The median number of days it took to sell a single-family home declined in March to 29.9 days, compared with 41.4 days in February and 34.2 days in March 2015.

• March’s sales level rose above the 400,000 level for the first time in three months.

• C.A.R. President Pat “Ziggy” Zicarelli commented, “California’s housing market is moving in the right direction as we enter the spring home-buying season, but sales growth will likely be isolated in areas where inventory is more abundant and housing affordability is less of an issue. For example, in the Bay Area, where inventory is extremely tight, annual sales are down in the double-digits in seven of the region’s nine counties.”

• The number of active listings increased slightly for the third consecutive month after declining for five straight months, but was not enough to boost housing supplies. Active listings increased 3.9 percent from February on a statewide basis.

• The increase in active listings was outpaced by the rate of home sales, causing C.A.R.’s Unsold Inventory Index to drop from 4.6 months in February to 3.6 months in March.

TALKING POINTS …

• Existing home sales surged 5.1 percent to an annual rate of 5.33 million units last month. February's sales pace was revised slightly down to 5.07 million units from the previously reported 5.08 million units, according to the National Association of REALTORS®.

• Economists had forecast sales rising 3.5 percent to a 5.30 million-unit pace in March. Sales were up 1.5 percent from a year ago. The number of unsold homes on the market in March rose 5.9 percent from February to 1.98 million units. Supply was, however, down 1.5 percent from a year ago.

• Existing home sales rose in all four regions last month, jumping 11.1 percent in the Northeast and accelerating 9.8 percent in the Midwest.