As fall has arrived, California home sales have slowed, but this is usual for the off-season. In September, sales across the state were still above 400,000, and the median home price was approximately $480,000. With improving sales, all eye are on the effects of the new Consumer Financial Protection Bureau’s “Know Before You Owe Disclosure.”
Due to the extended loan processing time, it appears certain sales have been delayed. During the first week of implementation, lower numbers of mortgage applications were completed. No one truly knows the long-term effects of this new disclosure.
Although California’s median home price has steadily increased, it may have experienced its peak for 2015. Economists explain a shift in the mix of sales has helped moderate house prices. This trend is expected to continue through the rest of the year.
There are other key points mentioned in September’s resale housing report. As sales improved, the amount of active listings dropped. Also, unsold inventory was down from one year ago, and the time it takes to sell a home decreased by approximately four days.
According to the sales-to-list ratio, real estate is selling below list price. The only area enjoying high demand and a push for prices above listing is San Francisco Bay. This is partly due to a lack of homes on the market. At the state level, price per square foot has seen an increase, but it has started to level off. In September 2015, mortgage rates fell as well. The average fixed-mortgage rate was 3.89 percent.