California Home Sales, Prices Post Records in May
Defying analysts’ predictions of a slowdown in May home purchases, both sales and prices of existing homes in California hit record highs in May, a realty trade group reported Monday.
Sales of existing homes in California rose 7.2% last month over the same period last year to a seasonally adjusted annualized rate of 580,540, according to the California Assn. of Realtors and Transamerica Intellitech.
The median price of an existing single-family home in California jumped 11.8% in May to $246,420 from $220,410 a year ago, CAR figures show.
Because the national economy has begun showing some signs of slowing, last month’s surge in home sales caught experts by surprise.
“The sales increase was more robust than I expected,” said Leslie Appleton-Young, vice president and chief economist for CAR. “I thought the numbers would remain flat or reflect just a slight increase.”
The jump in home sales can also be attributed to the unexpected strength of the housing market in the more affordable areas of the state, such as Los Angeles, San Bernardino and Riverside counties, Appleton-Young said.
The San Fernando Valley posted especially strong sales gains last month, said Jerry Berns, a broker for Re/Max Center in Encino.
“The general mood over here is really good right now,” Berns said. “I see a lot of move-up buyers in the $300,000-to-$750,000 range.”
Bosco Wong, a broker at Long Dragon Realty in Arcadia, said his office posted record-breaking May home sales, in part because buyers wanted to close deals and settle into their new homes well before the start of school in September.
“Houses that didn’t sell for six or seven months suddenly are selling with multiple offers in one day, “ Wong said.
Nationally, sales of existing homes rose 4.3% in May from April to an annualized rate of 5.1 million units, according to the National Assn. of Realtors, indicating this key sector of the economy remains healthy despite the Federal Reserve’s string of interest rate hikes.
Analysts had projected sales would dip to 4.84 million units from April’s 4.88-million rate. The national median home sale price rose 3.3% year-over-year to $137,200.
In Southern California, San Diego County posted the biggest jump in May home prices, with a 20.7% gain to $276,650, from $229,220 in May 1999. Prices in Orange County rose 17% to $322,080, from $275,260, while Ventura County saw a 10.7% increase to $288,780, from $260,950. Prices in Riverside and San Bernardino counties climbed 8.4% to $137,190, from $126,530, and Los Angeles County prices rose 3% to $208,710, from $202,630.
These prices reflect sales of existing houses. A report earlier in the month from DataQuick Information Systems said that a burst of activity in late May boosted monthly sales of existing and new homes in L.A. County by almost 6% and by 9% in Orange County.
