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Showing true signs of improvement, California’s housing market continued to perform better than expected in April with both the median home price and home sales increasing month to month.
In its report, the California Association of Realtors added, however, that decreased home affordability remains a challenge for buyers in many areas of the state.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 394,070 units in April, according to information collected by CAR from more than 90 local Realtor associations and MLSs statewide.
April marked the sixth consecutive month that sales were below the 400,000 level and the ninth straight decline on a year-over-year basis. Sales in April increased 7.4% from a revised 367,020 in March but were down 7% from a revised 423,690 in April 2013.
“With home prices increasing by double-digits in 2013, many investors have decided to leave the market which is adversely affecting home sales as a whole,” said CAR President Kevin Brown. “While the number of homes sold continued to decline from a year ago, the better-than normal surge in sales activities in April is encouraging and could be an indication that we will see further improvement in the housing market in the next few months.”
The statewide median price of an existing, single-family detached home rose 3.2% to $449,360 in April compared with March, reaching its highest level since December 2007. April’s price was 11.6% higher than the revised $402,830 recorded in April 2013, marking the second straight month that the median price increased both month to month and year to year. The statewide median home price has increased year over year for the previous 26 months.
The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
“Looking forward, it is likely that we will see a more moderate level of price increase throughout the rest of the year, and further improvements in sales in the spring home buying season,” said CAR Vice President and Chief Economist Leslie Appleton-Young.
“Increasing home prices, relatively higher interest rates, and tight lending standards, however, will continue to present challenges to home buyers who are facing affordability issues,” she added. “Primary home buyers may no longer have to compete with investors in 2014, but instead they need to worry about increased borrowing costs.”
Other key facts from CAR’s April 2014 resale housing report include:
• Housing inventory remained tight in April, with the supply of existing, single-family detached homes for sale slipping last month to 3.5 months, down from March’s Unsold Inventory Index of 4 months, but up from 2.8 months in April 2013. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.
• The median number of days it took to sell a single-family home fell to 33.8 days in April, down from 35 days in March but up from 27.9 days in April 2013.
• Mortgage rates remained flat in April, with the 30-year, fixed-mortgage interest rate averaging 4.34%, the same rate recorded in March, but up from 3.45% in April 2013, according to Freddie Mac. Adjustable-mortgage interest rates in April averaged 2.44%, down from 2.48 in March and down from 2.63% in April 2013.
While we all who own and live in P-town enjoy the increasing real estate values, what I personally don’t enjoy is who are scooping up the homes for sale. And those of us who have lived here for years know exactly what I am talking about.
We’re seeing a massive influx of people not from the United States. People who’s values and sense of community don’t align with white American traditional values. They don’t interact with us. You don’t see them at the Concert in the Park or any other functions around town. You don’t see them in the restaurants or shops around town. They are going to kill P-town in the next 20 or so years. Main St. will be history.
Pleasanton is looking more and more like Fremont everyday. Sad sad sad.
The previous comment displays the xenophobia that seems to have gripped some of the people in this country. The message is clearly if your not “American”, whatever that means (unless you are Native American), than your changing our little town.
Are we that small minded and short sighted that we don’t recognize that our families are a few generations away from not being “American”. It is hard for some people, particularly my neighbor in Castlewood, to wrap their heads around that life and society are constantly evolving. We no longer live in the 50’s when everyone looked “American”. We are all immigrants who comprise the mosaic of this great country.
In business and biology there is a mantra that all successful entities live by, “adapt or die”. You can choose to fight change, or you can embrace diversity. It’s all up to you.
Hey Tom,
I’ve found recent Indian immigrants to be very outgoing, friendly, bright, hard working, and exhibit more neighborhood values than some of the people I grew up with in this town.
You might try talking to someone that doesn’t look like you once in awhile. Get past your prejudice. It might be you that is the problem.
I recently moved with my family to Pleasanton *because* it seems to exhibit good, traditional American values. But I think those aren’t what you think they are. Americans welcome diversity and culture, and always finds a way to take the best of what they have to offer and integrate them in a way that makes all our lives richer and enjoyable.
Concerts in the park are nice. Maybe we’ll get to see a Japanese taiko performance there some time? Or an African dance performance? I’d love to see that, and I’d love to see Tri-Valley embrace those things.
There are a lot of Asians and Indians moving into the area. I think you should be prepared to evolve what you think of as “Traditional American Values’. I expect Pleasanton will become an even better city for it.
Well, Tom F., if you see this as a problem, what are you proposing to stop it?
You can’t blame these “different” buyers for wanting to move here, Tom F. The blame lies with the sellers. You see, there are plenty of Americans wanting to buy a house, but don’t have enough cash to do so or get outbid by these “foreigners” with their hordes of cash. Sellers can sell their house to whomever they want. The only color they and their realtors see is GREEN.
Tom F.: If that really bothers you, you should consider selling your place and move. Surely, you won’t be missed by anyone in this evolving community. Ciao!
It does not matter to me and as a matter of fact it pleases me. For the most part Asians have moved into my neighborhood and make great neighbors. They might be the only reason our school scores have moved up and competition for homes has driven up the prices especially on the upper end homes. We moved here in 78 and have the city completely transformed. Some for the better but for the most part for the worst. We will probably take our profit and leave the state as others in our neighborhood have. Maybe it is time that Pleasanton changed and got a new identity. I wish the city the best.
John, seal the borders and other entry points into the US. Limit the flow of people from the third world. No good comes from millions of dirt poor people coming here. The Obama reign of terror is destroying this country.
Okay, I get it. You were joking.
I agree with Tom F. Just look south to Fremont and Milpitas. The facts are this town will follow suit. Go To any dining or retail establishment and count the Indian families spending money. No prejudice here, just the plain truth.
I love how a simple article about home prices rising (supposedly a good thing after our last housing crisis) turns into an Asian bashing discussion simply because these Americans who don’t look like us are buying up properties that we can no longer afford. Go cry a ****ing river! I personally love the diversities these different group of Americans bring to P-town. This is exactly the reason I choose to live here in California and not move to crap hole Idaho as some of my neighbors did. And guess what? Most of those who moved out of state are miserable ‘cuz grass just ain’t greener on the other side. So go on, get outta P-town if you don’t like its transformation. Make room for those who do want to live here.
Tom, so your solution to foreigners buying up expensive properties in Pleasanton is to lock out all the poor foreigners from the country?
lol
as long as we are at it, why not a city name change? Bombay South and Peking North?
Great to hear that the trash is being priced out of town.
Unbelievable racist remarks for an article with a positive outlook for our town. You scared, old, white, males had better get used to the changing complexion and culture of the world. This is coming from a slightly younger white male who doesn’t think living with different cultures is a negative experience. If I were an immigrant, who could afford to live in this great town, I would keep to myself as well. The racism is obvious and embarrassing. Grow up.
I don’t know one Asian neighbor who hasn’t been a good neighbor…VIVA AMERICA!