California home sales decline as rates increase
California home sales dipped for the second straight month in September. The California Association of Realtors blames this drop on a slight rise in interest rates and economic uncertainty, which is stalling housing demand.
Furthermore, housing supply conditions continued to loosen as the housing market entered its off season.
The available supply of existing, single-family detached homes for sale rose in September to 3.6 months, up from August’s unsold Inventory Index of 3.1 months. The index was 3.7 months in September 2012.
“It’s encouraging that housing inventory has been steadily improving since May, when housing supply hit its recent bottom,” said C.A.R. President Don Faught. “While inventory remains constrained in the lower-priced home segment and primary home buyers continue to compete with investors, the number of properties for sale overall has been rising since March 2013 and is at its highest level since mid-2012.”