According the the California Association of Realtors, California home sales fell in February, but housing inventory increased as sellers gear up for the spring home-buying season.”
“The slower sales in February reflects diminished housing affordability after three years of solid price increases and interest rates that are nearly a full percentage point higher than a year ago,” said C.A.R. President Kevin Brown. “With the interest rate difference alone, home buyers this year would have to pay $150 more per month on their mortgage payment than last year, a substantial amount for many would-be home buyers trying to get into the market.”
The statewide median price of an existing, single-family detached home declined 1.6 percent from January’s median price of $410,990 to $404,250 in February. However, it should be noted February’s price was 21.3 percent higher than the revised $333,180 recorded in February 2013. This marks two full years of consecutive year-over-year price increases and the 20th straight month of double-digit annual gains.