PropertyRadar: Spring could bring hope for California homebuyers

Median home prices remain unchanged

The median price of a California home in October remained unchanged from September, once again coming in at $385,000, reaffirming a continuous trend of flat prices, according to the latest PropertyRadar Real Property Report.  

A year ago, median home prices gained 6.8%, the smallest gain since May 2012.

“Earlier this year we accurately predicted that 2014 would be a year of lower sales volume and flat prices because home prices rose too far too fast,” said Madeline Schnapp, director of economic research for PropertyRadar. “That’s exactly what’s happened and hopefully by next spring, prices will be more in line with what prospective homebuyers can afford.”

Meanwhile, California single-family home and condominium sales increased 4.4% to 33,376 units from 31,985 in September. Year-over-year, sales were down 5.3% from 35,256 sales in October 2013.

On a regional basis, sales were up 2% in the Bay Area, 4.3% in Southern California and down 1.6% in the Central Valley. 

Here are five other quick statistics that the report found:

  • Aggregate negative equity of California homeowners has been unchanged since August due to the fact that price appreciation has either slowed or reversed in many parts of California.
  • Cash sales totaled 7,311 in October and were 21.9% of total sales. Cash sales have been steadily declining since reaching a peak of 40% of total sales, or 14,028, in August 2011. 
  • Flip sales gained 2% for the month but are down 38% for the year. 
  • Institutional Investor LLC and LP purchases edged up 1.9% for the month but are down 26.6% from October 2013.
  • Foreclosure starts, notices of default, fell 2% between September and October and are down 27.3% from October 2013.

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