The median price of single-family homes in California continued to rise in July, though the slight increase in available listings, which had been limited by inventory shortages, offered some relief to home buyers as sales began to climb compared to the previous month and year.

According to the California Association of Realtors (CAR) report on "July Housing Market and Price Trends" released on the 26th, a seasonally adjusted total of 278,810 single-family homes were sold in California in July. This represents a 3.6% increase from 270,200 homes in June, and a 4.1% increase from 268,840 homes in July of last year.

Despite the sales increase in July, monthly sales volume in the California housing market remained below 300,000 units for 22 consecutive months, including July.

The median price of single-family homes sold in California in July was $886,560, a 1.6% decrease from $900,720 in June, but a 6.5% increase from $832,530 in July of last year. The median home price has shown year-over-year increases for 13 consecutive months. Home prices in California have been rising steadily, with the median price exceeding $800,000 for 15 of the past 16 months. The main driver of this price increase has been the market for high-end homes priced over $1 million. According to CAR, homes priced over $1 million accounted for 35.4% of all sales in July, with sales in this price range increasing 24.5% from the previous year, while sales of homes priced under $500,000 dropped by 1.6%.

Analysts attribute the difficulty in finding homes priced under $500,000 to a growing shortage of available inventory in this price range. Additionally, demand continues to outpace supply, leading to fierce competition among buyers.

CAR President Melanie Barker said, "The summer selling season has started, and homebuyers who had been waiting on the sidelines are entering the market." However, she noted that high mortgage rates and inventory shortages are still making it difficult for buyers to purchase homes. The average 30-year fixed mortgage rate in July was 6.85%, up from 6.71% a year ago.

In Southern California, both home prices and sales increased in July. The median price for single-family homes in Southern California was $881,000, a 6.1% increase from $830,000 in July of last year. Southern California sales volumes in July increased by 4.9% compared to June and by 11.4% compared to the previous year.

Breaking it down by county, the median price for single-family homes in Los Angeles County in July was $909,010, a 2.2% increase from $889,180 in June, and a 6.7% increase from $851,540 in July of last year. Although sales volumes in July decreased by 1.5% compared to June, they increased by 9.1% compared to the previous year.

Orange County had the highest median home price in Southern California at $1.39 million in July. While this was a 4.1% decrease from $1.45 million in June, it marked a 12.4% increase from $1.3 million in July of last year. Sales volumes in Orange County rose by 8.1% compared to June and by 12.4% compared to last year.

The median home price in Riverside County increased by 5.7% compared to last year, while San Bernardino County saw a 6.2% increase, Ventura County a 5.7% increase, and San Diego County a 5.3% increase. Sales volumes also rebounded in these counties, showing year-over-year increases in July.

Jordan Levine, Chief Economist at CAR, commented, "Sales volumes are likely to see a more significant rebound once mortgage rates and inflation ease."



<Hwandong Cho>