It has been a hot summer for real estate in California with home sales higher than they were a year ago. Although sales in August decreased by 3.8 percent from July, the numbers were still up by 9.3 percent over the previous period in 2014. This means that home sales were above 400,000 for the fifth month in a row.
While more properties are being sold, prices are showing signs of cooling off. In fact, home price gains were modest, reflecting the smallest increase in more than three years. This may seem disappointing for sellers, but it is a positive sign for the market on a whole. After all, the slowed growth actually represents stabilization. With more homes on the market, competition tips more toward the buyer. This means that there is increased activity throughout California, which is good for buyers and sellers at all price points.
To look at the numbers, median home prices only went up by one percent in August, showing a minimal increase over home prices in July. This gain was 2.5 percent over the previous year. While these tepid gains may seem like a letdown after an exciting buying season this summer, California is still expected to have a solid finish in 2015. Overall, sales figures should be higher in 2015 than expected.
There are many factors at play in the market, including increased inventory and renewed interest from new buyers, but 2015 is still a great time to buy or sell in California.