Wednesday, July 18, 2012

Low inventory may hurt California home sales

Home sales in California slowed in June, hurt by a lack of inventory, according to a new report.
The California Association of Realtors said on Tuesday that single family home sales across the state were up by about 8.5 percent year-to-year but were down 8.6 percent from May levels.
Single family home sales in the Bay Area were up 3.5 percent annually but down by 0.6 percent from May.

“Potential home buyers are frustrated by limited number of homes on the market for sale and growing discouraged by signs that the economy is slowing," state Realtors President LeFrancis Arnold said in a prepared statement.

The group's Unsold Inventory Index for existing, single-family detached homes remained at about half normal levels in June. It shows that the amount of time it would take to sell all of the homes on the market that month was about 3.5 months, compared to the 7-month standard it considers normal.

Improving job markets and low inventory are also helping to boost prices, especially in the Bay Area, the report showed.

The average price of existing homes in Santa Clara County jumped to $695,000 in June, up 8 percent from in May and soaring nearly 12 percent from the previous June. Sales were down nearly 11 percent from May, however, and down about 6 percent year-to-year.


Written by Cromwell Schubarth. Contact him at cschubarth@bizjournals.com

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