California non-distressed property sales drive home sales higher

PropertyRadar: "Real estate sales took off in June"

California single-family home and condominium sales grew 8.5% to 41,539 in June, up from 38,143 in May, mainly driven by an increase in non-distressed property sales, the latest California housing report from PropertyRadar said.

On a yearly basis, sales were up 16.4% from 35,681 in June 2014.

Non-distressed property sales jumped 19.9% year-over-year. Of note to investors, distressed property sales volume has remained nearly unchanged for 18 months and continues to remain a source of opportunity.

“After a mediocre May, California real estate sales took off in June,” said Madeline Schnapp, director of economic research for PropertyRadar. “The year-over-year jump was the largest since October 2012, likely due to improving economic conditions and fear of rising interest rates this fall.”

The median price of a California home in June increased to $415,000, the highest since November 2007. 

Furthermore, the median price was up $10,000, or 2.5%, from $405,000 in May. Across the state’s 26 largest counties, 19 counties saw median price increases while 7 experienced price decreases. The counties with the biggest median price increases were San Joaquin (8.5%), San Diego (5.7%) and Ventura (5.5%).

On a yearly basis, the median price of a California home was up 5.1% from $395,000 in June 2014.

“The jump in median home prices this past June surprised us,” said Schnapp.  “Despite affordability issues, demand was high enough to push median prices still higher.”

3d rendering of a row of luxury townhouses along a street

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