California Home Sales Decline in May

The California Association of Realtors reported a steep decline for May home sales, adding that it has been 13 years since this large of a year-over-year decrease. The 41.4% drop in home sales appears jarring, as does the drop in median home prices, which have not withered for eight years, according to National Mortgage News. All but just one of California’s 51 counties experienced a year-over-year drop. There is a potential light at the end of the tunnel with market data indicating a rebound is soon to come.

The trend reflects home deals reached during the height of the lockdown in March and April when open houses shifted online and buyers and sellers pulled out of the market. However, market data reflecting escrows opened more recently shows a rebound is underway.

"The sharp sales drop in May was the steepest we've seen in some time, but there are encouraging signs that show the market is recovering and should continue to improve over the next few months," said CAR President Jeanne Radsick Bakersfield.

The Los Angeles metro area posted a 46% sales drop last month, the biggest annual percentage decline for the region since October 2007. But house prices were up from year-ago levels in every Southern California county but Orange, where the median — or price at the midpoint of all sales — dipped 1.2%.

The numbers reflect closed sales for existing single-family homes, which represent more than two-thirds of all residential transactions.

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