Existing home sales and median home prices dipped in July, reflecting the impact of declining affordability, according to the California Association of Realtors.
Existing home sales reached a seasonally adjusted annualized rate of 415,840 in July, down 4.1% from the previous month and 5.1% from July 2015. This was fifth consecutive month with a year-over-year decline in home sales, even though it was the fourth straight month with sales above 400,000.
"Despite the tight housing supply conditions that have persisted over the past few years, home sales have stayed relatively solid," said CAR President Pat "Ziggy" Zicarelli in a news release Tuesday. "Even with a shortage of homes on the market, low rates and strong demand have been the norm."
Zicarelli added that some parts of the state, including the Bay Area, have seen inventory expand because the high prices have motivated sellers, but that supply will still be tight.
Additionally, the statewide median home price in July was $509,830, down 1.8% from June but up 3.9 % from a year ago.
