v.19 n. 44 – Released October 27, 2015
This Week’s Headlines:
- California Home Sales and Median Prices
- Events of Interest
- October 30: 2015-16 South Bay Economic Forecast Conference
- November 12: LAEDC 20th Annual Eddy Awards
The California Association of Realtors recently released their report on California existing home sales and median prices in September. The statewide median price last month was $482,150, down slightly (by 2.3%) compared with August but up by 4.3% from the year ago figure. Although home prices continue to rise on a year-over-year basis, they may have reached their peak for this year. While it is typical for the median price to reach its peak for the year somewhere between June and August, the geographic distribution of sales is also affecting the statewide median. The CAR report noted that more homes are now being sold in the Central Valley where the median price is lower than in coastal metro areas. The share of homes sold in the Central Valley increased from 25.5% last year to 26.4% this year, while in the Bay Area the share decreased from 18.8% to 17.2%. As the share of homes sold in lower-cost areas rises relative to more expensive regions, increases in the state-wide median price will moderate.
The number of single-family homes in California that closed escrow in September rose by 6.9% over the year to 425,030 units (seasonally adjusted annualized rate). Compared with August, sales were down by 1.5%. Home sales in September were up over the year for the eighth straight month.
Inventories continue to be very tight. State-wide the inventory of homes for sale in September was 3.7 months, unchanged over the month but down from 4.2 months from a year ago. In the Los Angeles metro area, there was a 3.9-month supply in September. The Inland Empire reported 4.4 months, while in the San Francisco Bay area there was only a 2.5-month supply.
Interest rates are still quite low, dipping over the month from 3.91% in August for a 30-year fixed rate mortgage to 3.89% in September. A year ago the average interest rate was 4.61%.
Below is a year-over-year summary of sales and price activity in Southern California by county. Although the statewide sales figures are seasonally adjusted, regional and county figures are not.
- Los Angeles County: unit sales increased by 9.6% over the year in September, while the median price rose by 6.5% to $517,750.
- Orange County: sales jumped by 13.8% and the median price was up by 1.7% to $707,700.
- Riverside County: sales of existing homes climbed by 10.4% and the median price increased by 4.0% to $329,200.
- San Bernardino County: sales rose by 9.2% in September with the median price rising by 8.0% to $229,890.
- San Diego County: unit sales were up by 4.8% and the median price rose by 3.8% to $539,340.
- Ventura County: sales shot up by 34.7% over the year while the median price edged up by 1.8% to $599,710.
Friday, October 30, 2015: 2015-16 South Bay Economic Forecast Conference
Location: California State University Dominguez Hills, Loker Student Union/Grand Ballroom, 1000 E. Victoria St., Carson 90747
The South Bay region has the second highest concentration of Fortune 500s in the State of California. As technology continues to rapidly evolve, how does that change the platform for the way companies conduct business in the South Bay region and what will it mean to your business? What is the next “big idea” in technology and how will that affect your industry?
The CSUDH South Bay Economic Forecast offers a focused look at the key economic drivers, employment trends, and the impacts and opportunities of a region in transition. Gain valuable insight and ideas about potentially lucrative industries in the South Bay region: aerospace, goods movement, creative industries, higher education, manufacturing, retail trade, healthcare, leisure and hospitality, real estate, digital media / entertainment, energy, and sports management.
Who Should Attend: Business Leaders in the community, civic leaders, small business owners, major corporations and South Bay residents.
Thursday, November 12, 2015: 20th Annual Eddy Awards
Location: Beverly Hilton, Beverly Hills, CA
The Eddy Awards® is one of the most prestigious awards programs to recognize leadership in economic development in business and government throughout Los Angeles County. The Eddy Awards®, a cocktail, dinner, and awards gala, also supports fulfillment of the Los Angeles County Economic Development Corporation’s mission to attract, retain, and grow businesses and jobs for the regions of Los Angeles County.