News from C.A.R.

  • C.A.R. SVP and Chief Economist Leslie Appleton-Young has been named to Housing Wire's annual Women of Influence list, which recognizes women leading the mortgage and housing industry forward.

    Leslie_WOI2017

    Appleton-Young joined C.A.R. in 1984 and since then has made a significant and meaningful impact on the lives of REALTORS® and homeowners. In her role, Appleton-Young directs the activities of the Association's Member Information Team, overseeing analysis of the housing market and brokerage industry trends, broker relations, and membership development activities.

    She oversaw the recent development of programs such as the Diversity Initiative, designed to increase Latino homeownership and build relationships with cultural groups in the state while promoting equitable access to homeownership.

    Additionally, she and her team are dedicated to engaging more women in the leadership of brokerage firms and the industry. While women make up the majority of C.A.R.'s membership (57 percent), they are dramatically underrepresented in executive levels of management in the brokerage community. Together with her team, C.A.R.'s new Women's Initiative is addressing that gap, looking to better understand the reasons for the gap, and, more importantly, creating a supportive community to help ALL strive toward higher levels in their careers.

    As chief economist, she actively guides the Research & Economics team, which collects primary data through survey research, multiple listing services, and other sources to analyze and interpret housing trends, and foster understanding of the economic and housing market landscape.

    Appleton-Young also oversees Industry Relations for the Association, which is designed to increase impact of association programs, products, and services through strategic relationships with key stakeholders including diverse subsets of the membership, the brokerage community, the local associations, as well as the broader industry.

    As a housing economics expert, she has been quoted in countless media outlets through the years including Housing Wire, The Los Angeles Times, and The San Francisco Chronicle. In the last year, she has been featured on KABC-TV, NBC San Diego, and a guest on radio stations such as KPCC, KABC, and KNX 1070.

    Appleton-Young continues to be a well-respected thought leader in the real estate industry. Her leadership attributes are second to none, and she has developed a unique culture within the organization where her staff and colleagues feel valued, appreciated, and honored to work by her side.

    See the entry here on Housing Wire.

    Created: 8/21/2017 10:44:51 AM

  • For release:
    July 24, 2017

    California pending home sales continue downward trend in June

    LOS ANGELES (July 24) – Despite robust closed escrow sales in June, California pending home sales slipped for the sixth consecutive month, suggesting an impending slowdown in the state's housing market as the peak homebuying season winds down, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

    With increasing concerns over shrinking housing inventory and suppressed housing affordability, REALTORS® remained cautious in June, C.A.R.'s latest Market Pulse Survey** found. REALTORS® reported fewer floor calls and listing appointments but higher open house traffic than in May.

    Pending home sales data:

    • Based on signed contracts, year-over-year statewide pending home sales fell for the sixth straight month in June on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* declining 0.9 percent from 119.0 in June 2016 to 117.9 in June 2017. California pending home sales also slipped on a monthly basis, decreasing 0.6 percent from the May index of 118.7.

    • Pending home sales have declined every month so far this year, however, the pace of decline has slowed in recent months. But with additional headwinds of housing inventory that declined further last month as closed sales rose, and a double-digit drop in active listings, the state's housing market could be negatively impacted in the coming months.

    • Pending sales in the Southern California Region continued their upward trend in June and posted a 2.5 percent improvement from the previous year, as San Bernardino County and Orange County saw healthy bumps of 10.3 percent and 8.3 percent, respectively. Pending sales in San Diego (-3.6 percent), Riverside (-6.9 percent), and Los Angeles (-1.7 percent) counties declined from last June.

    • The Central Valley also posted a healthy pending sales gain in June, rising 5.2 percent from a year ago. Kern County saw its first significant increase (5.7 percent) in pending sales for the year after battling with the after-effects of precipitous declines in the energy markets.

    • The San Francisco Bay Area experienced a dip in pending sales in June, nudging down 0.6 percent on an annual basis. San Francisco County reversed last month's double-digit pending sales decline and rose 22.2 percent, while San Mateo and Santa Clara counties posted pending sales decreases of 10.1 percent and 0.4 percent, respectively as inventories remained extremely low and median prices exceeded $1 million.

    • In C.A.R.'s newest market indicator of future price appreciation, Market Velocity Index – home sales relative to the number of new listings coming on line each month to replenish that sold inventory – indicates that price growth will continue to accelerate, potentially back into double-digit territory, as it reached its highest level since 2013. At an index of 71.0, there were far more home sales than new listings to restock statewide inventory, leading to a deterioration in the number of active listings. With demand still running high, the elevated pace of home sales will likely persist through the fall.


    Year-to-Year Change in Pending Sales by County/Region

    County/Region/State Jun-17 Jun-16 Yearly % Change
    Counties
    Kern 79.5 75.2 5.7%
    Los Angeles 92.4 94.0 -1.7%
    Orange 82.6 76.3 8.3%
    Riverside 55.7 59.8 -6.9%
    San Diego 140.9 146.2 -3.6%
    San Bernardino 84.3 76.4 10.3%
    Monterey 58.2 62.6 -7.0%
    Sacramento 76.8 82.1 -6.5%
    San Francisco 137.2 112.3 22.2%
    San Mateo 99.0 110.0 -10.1%
    Santa Clara 101.5 101.9 -0.4%
    Santa Cruz 107.6 127.6 -15.7%
    Regions
    SF Bay Area 148.0 148.9 -0.6%
    So. CA 116.4 113.6 2.5%
    Central Valley 106.2 101.0 5.2%
    California (SA)* 117.9 119.0 -0.9%

    * Seasonally adjusted

    June REALTOR® Market Pulse Survey**:

    Entering the summer months, the housing market is showing signs of slowing as REALTORS® begin to grow cautious about dwindling inventory and curbed affordability.

    • The share of homes selling above asking price rose from 35 percent a year ago to 39 percent in June, while the share of properties selling below asking price fell from 28 percent to 25 percent. The remaining 36 percent sold at asking price, down from 37 percent in June 2016.

    • For homes that sold above asking price, the premium paid over asking price fell from 11 percent in June 2016 to 7 percent in June 2017, the lowest since February 2014.

    • The 36 percent of homes that sold below asking price sold for an average of 10 percent below asking price in June, compared to 11 percent a year ago.

    • Nearly three-quarters (74 percent) of properties sold in June received multiple offers, up from 72 percent in June 2016, and the number of offers received inched up from 3 offers in June 2016 to 3.5 offers this June.

    • The share of properties receiving three or more offers in June was 55 percent, compared to 47 percent a year ago.

    • Homes priced under $200,000, $400,000-$499,000, and $2 million and higher posted the greatest gains in receiving three or more offers compared with last year, rising from 23 percent to 39 percent, from 46 percent to 61 percent, and from 29 percent to 83 percent, respectively.

    • Listing price reductions rose from 22 percent a year ago to 24 percent in June.

    • A lack of available inventory remained at the top of the list of concerns for REALTORS®, with 38 percent indicating it as their biggest concern. Declining housing affordability/high interest rates concerned 29 percent of REALTORS®, while inflated home prices/housing bubble was cited by 23 percent of REALTORS®. A slowdown in economic growth, lending and financing, and policy and regulations rounded out REALTORS®' remaining biggest concerns.

    • While still in positive territory at an index of 52, REALTORS®' expectations of market conditions over the next year has been on the decline since the beginning of this year.

    Graphics (click links to open):

    YTY change in pending home sales by region.
    Pending sales vs. closed escrow sales.
    Fewer properties selling over asking price.
    Multiple offers increase.
    Price range of homes receiving 3+ offers.
    Market Velocity – indicator of future price appreciation.

    *Note: C.A.R.'s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state. Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market. A sale is listed as pending after a seller has accepted a sales contract on a property. The majority of pending home sales usually become closed sales transactions one to two months later. The year 2008 was used as the benchmark for the Pending Homes Sales Index. An index of 100 is equal to the average level of contract activity during 2008.

    **C.A.R.'s Market Pulse Survey is a monthly online survey sent to more than 10,000 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month. More than 400 REALTORS® responded.

    Leading the way...® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
    # # #


    Created: 8/21/2017 10:44:51 AM
  • For release:
    Aug. 16, 2017


    California Starts Second Half of 2017 with Slow Growth in Home Sales


    - Existing, single-family home sales totaled 421,460 in July on a seasonally adjusted annualized rate, up 0.9 percent from July 2016 but down 4.9 percent from June.


    - July's statewide median home price was $549,460, up 7.4 percent from July 2016 but down 1.1 percent from June.


    - The median number of days on the market was essentially flat at 22.8 days in July compared with 22.4 days in June, but saw a decrease from a year ago when the median time on market was 28 days.


    - At the regional level, the Central Valley was the standout in July, with Kings (+52.2%), Madera (+39.7 percent), and Glenn (+23.5 percent) posting double-digit gains.


    LOS ANGELES (Aug. 16) – Despite tight supply constraints and worsened affordability, California's housing market remained solid in July as it experienced gains year-over-year in both sales and price, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.


    Closed escrow sales of existing, single-family detached homes in California remained above the 400,000 benchmark for the 16th consecutive month and totaled a seasonally adjusted annualized rate of 421,460 units in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2017 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The July figure was down 4.9 percent from the revised 443,120 level in June but up 0.9 percent compared with home sales in July 2016 of a revised 417,680. Year-to-date sales are running 2.9 percent ahead of last year's pace, but are beginning to slow.


    "As we enter the second half of the year, we are likely to see some slowdown in sales that extends beyond the typical seasonality change," said C.A.R. President Geoff McIntosh. "While the rate of closed sales indicates that California's housing market has continued to move forward, tight supply continued to push up prices and lower affordability, which can ultimately undermine the housing market by putting homeownership out of reach for too many households."


    Although declining to its lowest point since April 2017, the statewide median price remained above the $500,000 mark for the fifth straight month and remained close to the most-recent peak. The median price declined 1.1 percent from a revised $555,410 in June to $549,460 in July, but was up 7.4 percent compared with the revised $511,420 recorded in July 2016. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling, as well as a general change in values.


    "Despite a dip from the recent record high in June, the statewide median price continued to rise at a high single-digit rate in July, and was growing at the second fastest pace in 2017," said C.A.R. Senior Vice President and Chief Economist Leslie-Appleton-Young. "Tight inventory remained the fuel to upward momentum in home prices, particularly in the Bay Area and other high-priced markets. With supply expected to be tight for the rest of the year, home prices should grow moderately in the next few months."


    Other key points from C.A.R.'s July 2017 resale housing report include:


    • The Central Valley posted both the fastest and most broad-based increase. Overall, the Central Valley experienced a 1.7 percent increase in July, with Kings (+52.2 percent), Madera (+39.7 percent), and Glenn (+23.5 percent) posting double-digit gains. Fresno, Sacramento, Merced, Placer, and Stanislaus also experienced an uptick in closed sales in July.
    • July's 7.4 percent increase in home prices was the second fastest this year, and faster than any month last year except January suggesting that affordability is not only deteriorating, but deteriorating at a faster rate.


    • Inventory is poised to continue to constrain the housing market as C.A.R.'s Unsold Inventory Index remained tight despite an increase from 2.7 months in June to 3.2 months in July. The increase should not be interpreted as anything other than a seasonal slowdown after the peak summer months. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate. The index stood at 3.6 months in July 2016.

    • The median number of days it took to sell a single-family home was essentially flat at 22.8 days compared with 22.4 days in June but was down from 28 days in July 2016.


    • C.A.R.'s sales-to-list price ratio* was 100 percent of listing prices statewide in July, 100 percent in June, and 99.2 percent in July 2016. Regionally, San Francisco had the highest sales-to-list price ratio at 118.6 percent and Mariposa had the lowest at 93.3 percent.


    • The average price per square foot** for an existing, single-family home statewide was $270 in July, $269 in June, and $251 in July 2016.


    • San Mateo had the highest price per square foot in July at $898/sq. ft., followed by San Francisco ($893/sq. ft.), and Santa Clara ($672/sq. ft.). Counties with the lowest price per square foot in July included Kern ($135/sq. ft), Lassen ($136/sq. ft.), Siskiyou ($142/sq. ft.), and Del Norte ($142/sq. ft.).


    • Mortgage rates continued to go lower in July as the 30-year, fixed-mortgage interest rate averaged 3.97 percent in July, up from 3.90 percent in June and also up from 3.44 percent in July 2016, according to Freddie Mac. The five-year, adjustable-rate mortgage interest rates edged up in July to an average of 3.22 percent from 3.14 percent in June and was up from 2.75 percent in July 2016.


    Graphics (click links to open):
    Calif. home sales highest in four years.
    Calif. median home price continues to grow year-over-year
    Sales improved in mid and high-priced markets
    Calif. price per square foot highest since 2007.
    Calif. sales to list price ratio


    Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.


    *Sales-to-list price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.


    **Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 39 counties.


    Leading the way?® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.


    # # #

    SALES AND PRICE ACTIVITY (SFH Homes)
    Regional/ Sales Data and Condo Sales Data Not Seasonally Adjusted

    July-17 Median Sold Price of Existing Single-Family Homes Sales
    State/Region/County Jul-17 Jun-17 Jul-16 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
    CA SFH (SAAR) $549,460 $555,410 R $511,420 R -1.1% 7.4% -4.9% 0.9%
    CA Condo/Townhomes $443,160 $451,450 $421,830 R -1.8% 5.1% -12.1% 1.4%
    Los Angeles Metropolitan Area $506,000 $500,000 R $465,000 R 1.7% 8.6% -22.3% -2.5%
    Inland Empire $340,000 $345,000 R $317,950 R -0.7% 7.4% -19.7% -0.9%
    S.F. Bay Area $898,880 $908,740 $810,510 -1.1% 10.9% -16.4% 0.3%
    S.F. Bay Area Jul-17 Jun-17 Jul-16 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
    Alameda $875,500 $900,000 $800,000 -2.7% 9.4% -16.0% -1.5%
    Contra-Costa $633,250 $660,000 $625,000 -4.1% 1.3% -17.8% 1.4%
    Marin $1,224,000 $1,272,500 $1,150,000 -3.8% 6.4% -12.9% 10.8%
    Napa $695,000 $685,000 $634,380 1.5% 9.6% -19.8% -26.3%
    San Francisco $1,428,000 $1,469,000 $1,362,500 -2.8% 4.8% -8.2% 3.1%
    San Mateo $1,500,000 $1,433,750 $1,350,000 4.6% 11.1% -26.3% -7.0%
    Santa Clara $1,165,000 $1,182,500 $1,045,000 -1.5% 11.5% -13.3% 15.2%
    Solano $420,000 $420,000 $381,000 0.0% 10.2% -15.1% -10.0%
    Sonoma $645,000 $627,250 $572,500 2.8% 12.7% -17.4% -10.6%
    Southern California Jul-17 Jun-17 Jul-16 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
    Los Angeles $566,240 $548,220 $513,700 3.3% 10.2% -28.4% -5.6%
    Orange $785,000 $795,000 $734,000 -1.3% 6.9% -13.9% 2.5%
    Riverside $385,500 $385,000 $359,900 0.1% 7.1% -22.3% -2.0%
    San Bernardino $266,250 $270,000 R $248,000 R -2.0% 8.3% -15.2% 0.8%
    San Diego $613,000 $612,750 $560,000 0.0% 9.5% -16.3% -3.1%
    Ventura $648,500 $637,500 R $615,000 R 1.7% 5.4% -21.5% -8.7%
    Central Coast Jul-17 Jun-17 Jul-16 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
    Monterey $629,000 $624,500 $539,750 0.7% 16.5% -24.5% -10.3%
    San Luis Obispo $590,000 $556,000 $549,000 6.1% 7.5% -14.0% -17.2%
    Santa Barbara $611,000 $767,500 $583,800 -20.4% 4.7% -22.1% 15.7%
    Santa Cruz $815,000 $860,000 $756,500 -5.2% 7.7% -28.8% -4.7%
    Central Valley Jul-17 Jun-17 Jul-16 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
    Fresno $258,000 $260,000 $235,700 -0.8% 9.5% -11.7% 8.8%
    Glenn $205,000 $210,000 $225,000 -2.4% -8.9% -16.0% 23.5%
    Kern $235,000 $229,450 $233,500 2.4% 0.6% -13.5% -5.3%
    Kings $222,000 $230,000 $215,000 -3.5% 3.3% -2.8% 52.2%
    Madera $279,250 $279,000 $233,000 0.1% 19.8% 14.3% 39.7%
    Merced $260,000 $250,100 $215,000 4.0% 20.9% -5.1% 1.6%
    Placer $453,000 $472,000 $435,000 -4.0% 4.1% -17.8% 0.2%
    Sacramento $353,000 $347,000 $320,000 1.7% 10.3% -9.1% 1.7%
    San Benito $535,000 $535,000 $485,000 0.0% 10.3% -8.8% -8.8%
    San Joaquin $350,000 $340,000 $308,500 2.9% 13.5% -21.9% -6.4%
    Stanislaus $297,000 $289,000 $270,000 2.8% 10.0% -10.0% 0.6%
    Tulare $219,950 $225,450 $215,000 -2.4% 2.3% -19.9% -3.6%
    Other Counties in California Jul-17 Jun-17 Jul-16 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
    Amador $320,000 $337,500 $275,000 -5.2% 16.4% 10.4% 29.3%
    Butte $299,900 $306,500 $288,750 -2.2% 3.9% 9.6% -2.5%
    Calaveras $324,500 $310,000 $291,000 4.7% 11.5% -18.9% -8.2%
    Del Norte $204,900 $165,000 $201,280 24.2% 1.8% 46.2% 18.8%
    El Dorado $480,500 $499,000 $425,000 -3.7% 13.1% -14.0% -3.0%
    Humboldt $307,500 $302,500 $307,900 1.7% -0.1% 8.3% -4.9%
    Lake $265,000 $259,500 $245,250 2.1% 8.1% -24.5% -5.1%
    Lassen $171,000 $195,000 $165,000 -12.3% 3.6% 4.2% 8.7%
    Mariposa $262,500 $300,000 $270,000 -12.5% -2.8% -45.0% -62.1%
    Mendocino $370,000 $445,000 $345,000 -16.9% 7.2% 21.3% -14.9%
    Mono $578,000 $482,850 $534,600 R 19.7% 8.1% 90.0% 18.8%
    Nevada $398,500 $380,000 $359,000 4.9% 11.0% -18.2% -26.3%
    Plumas $325,000 $297,000 $245,000 9.4% 32.7% -32.7% 0.0%
    Shasta $255,000 $269,900 $229,450 -5.5% 11.1% -17.2% -0.4%
    Siskiyou $215,000 $235,000 $214,000 -8.5% 0.5% -8.5% 19.4%
    Sutter $280,300 $277,000 $275,000 1.2% 1.9% -27.1% -24.7%
    Tehama $206,750 $187,500 $184,000 10.3% 12.4% -33.3% 3.2%
    Tuolumne $292,500 $287,000 $245,000 1.9% 19.4% -21.6% -18.8%
    Yolo $426,750 $445,000 $389,000 -4.1% 9.7% -29.2% -7.5%
    Yuba $266,890 $275,470 $254,500 -3.1% 4.9% -23.6% 9.1%

    r=revised
    NA=not available

    Supply Indicators - (SFH Homes)
    Regional/ Sales Data and Condo Sales Data Not Seasonally Adjusted

    July-17 Unsold Inventory Index Median Time on Market
    State/Region/County Jul-17 Jun-17 Jul-16 Jul-17 Jun-17 Jul-16
    CA SFH (SAAR) 3.2 2.7 3.6 22.8 22.4 28.0
    CA Condo/Townhomes 2.4 2.2 3.0 R 21.4 21.2 27.2 R
    Los Angeles Metropolitan Area 3.6 2.9 3.9 24.6 24.6 44.5
    Inland Empire 3.7 2.9 4.1 26.5 26.4 45.8 R
    S.F. Bay Area 2.1 1.8 2.6 21.3 20.4 22.4
    S.F. Bay Area
    Alameda 1.8 1.6 2.3 18.5 17.8 18.2
    Contra Costa 2.2 1.9 2.6 19.9 18.6 19.7
    Marin 2.3 2.4 2.9 31.9 27.4 37.8
    Napa 4.7 3.8 4.0 48.9 48.8 52.8
    San Francisco 1.4 1.7 2.1 22.1 21.2 24.3
    San Mateo 1.7 1.3 2.2 R 17.9 17.6 18.4
    Santa Clara 1.5 1.4 2.5 R 18.2 17.9 19.7
    Solano 2.7 2.3 3.0 32.5 32.7 35.4
    Sonoma 3.3 2.7 3.0 42.6 39.4 44.9
    Southern California
    Los Angeles 3.3 2.7 3.6 22.6 22.5 38.4
    Orange 3.4 3.0 4.1 23.1 23.5 51.6
    Riverside 3.5 2.8 4.2 26.8 26.8 48.0
    San Bernardino 4.0 3.0 4.1 26.1 25.7 R 41.9 R
    San Diego 2.9 2.5 3.4 20.3 20.3 21.8
    Ventura 5.0 4.1 4.7 46.3 44.0 54.7
    Central Coast
    Monterey 5.0 3.5 4.9 R 24.4 24.3 26.9
    San Luis Obispo 4.6 3.8 4.0 23.2 23.2 29.4
    Santa Barbara 4.7 3.7 5.5 28.0 25.4 26.9
    Santa Cruz 4.2 2.9 4.1 R 23.5 20.5 24.1
    Central Valley
    Fresno 3.2 2.9 3.8 21.6 21.5 26.4
    Glenn 3.5 3.6 4.6 22.8 28.9 21.5
    Kern 3.4 2.9 3.7 24.7 24.5 25.2
    Kings 2.9 2.7 4.0 27.7 27.1 22.8
    Madera 3.8 4.4 6.0 31.0 24.3 48.2
    Merced 3.2 3.0 3.2 23.9 21.8 28.5
    Placer 2.9 2.3 3.3 20.3 20.2 21.4
    Sacramento 2.3 2.0 2.8 18.2 18.3 19.4
    San Benito 3.5 3.1 3.3 27.0 22.8 24.6
    San Joaquin 2.9 2.2 3.0 20.2 20.2 20.7
    Stanislaus 2.8 2.5 3.1 20.1 20.5 20.7
    Tulare 3.8 3.1 3.4 26.0 26.6 29.7
    Other Counties in California
    Amador 5.2 5.6 6.6 32.6 23.5 47.3
    Butte 2.7 3.0 3.1 20.6 22.2 25.2
    Calaveras 6.8 5.4 6.1 40.7 27.8 31.0
    Del Norte 9.5 13.0 10.4 101.9 126.4 91.0
    El Dorado 4.7 4.1 4.6 27.9 24.6 28.6
    Humboldt 4.8 5.1 3.7 22.2 23.7 27.2
    Lake 6.5 4.9 6.3 35.6 26.4 72.8
    Lassen 7.5 7.2 NA 72.3 68.3 84.6
    Mariposa 7.6 4.2 3.1 31.0 33.9 93.9
    Mendocino 6.2 7.1 5.9 70.4 57.4 59.4
    Mono 6.0 11.7 10.4 94.6 121.0 130.7
    Nevada 4.3 3.5 3.1 24.7 21.1 25.1
    Plumas 11.5 7.3 12.6 97.2 87.4 99.1
    Shasta 4.6 3.8 4.7 26.0 23.8 26.6
    Siskiyou 7.2 6.2 9.0 41.0 32.8 35.8
    Sutter 3.6 2.5 2.3 20.2 20.6 22.1
    Tehama 7.4 4.8 7.9 47.1 46.8 51.3
    Tuolumne 7.0 5.3 5.5 31.0 31.6 32.8
    Yolo 2.9 2.0 2.8 19.0 19.3 20.8
    Yuba 2.8 2.0 3.0 21.0 20.9 20.9

    r=revised

    NA=not available

    Created: 8/21/2017 10:44:51 AM
  • For release:
    August 9, 2017

    Higher housing prices and tight inventory drag down California housing affordability; income required to buy doubles in five years

    • Twenty-nine percent of California households could afford to purchase the $553,260 median-priced home in the second quarter of 2017, down from 32 percent in first-quarter 2017 and down from 31 percent in second-quarter 2016.

    • A minimum annual income of $110,890 was needed to make monthly payments of $2,770, including principal, interest, and taxes on a 30-year fixed-rate mortgage at a 4.09 percent interest rate.

    • Thirty-eight percent of home buyers were able to purchase the $443,400 median-priced condo or townhome. An annual income of $88,870 was required to make a monthly payment of $2,220.

    LOS ANGELES (Aug. 9) – Higher home prices resulting from a severe lack of homes for sale and high demand during the hot home-buying season eroded California's housing affordability in the second quarter, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

    The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in second-quarter 2017 fell to 29 percent, down from 32 percent in the first quarter of 2017 and down from 31 percent in the second quarter a year ago, according to C.A.R.'s Traditional Housing Affordability Index (HAI). This is the 17th consecutive quarter that the index has been below 40 percent and the lowest since third-quarter 2015. California's housing affordability index hit a peak of 56 percent in the first quarter of 2012.

    C.A.R.'s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The Index is considered the most fundamental measure of housing well-being for home buyers in the state.

    A minimum annual income of $110,890 was needed to qualify for the purchase of a $553,260 statewide median-priced, existing single-family home in the second quarter of 2017. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,770, assuming a 20 percent down payment and an effective composite interest rate of 4.09 percent. The effective composite interest rate in first-quarter 2017 was 4.36 percent and 3.85 percent in the second quarter of 2016.

    Home prices have nearly doubled since affordability reached its highest level five years ago, and compared to then, home buyers now need twice the income to purchase a median-priced home. In the first quarter of 2012, buyers statewide needed a minimum annual income of $56,320 to purchase a home that was priced $279,190. And in the San Francisco Bay Area, a home buyer needed a minimum annual income of $90,370 to purchase a $447,970 priced home just five years ago. Compare that to the current minimum income of $179,390 needed to purchase an $895,000 priced home now.

    Condominiums and townhomes also were less affordable in second-quarter 2017 compared to the previous quarter. Thirty-eight percent of California households earned the minimum income to qualify for the purchase of a $443,400 median-priced condominium/townhome in the second quarter of 2017, and an annual income of $88,870 was required to make monthly payments of $2,220. Forty percent of households could afford to purchase the $414,840 priced condo or townhome in first-quarter 2017.

    Key points from the second-quarter 2017 Housing Affordability report include:

    • Compared to affordability in first-quarter 2017, only six of 43 counties tracked posted an improvement in housing affordability (Napa, Santa Barbara, San Benito, Mariposa/Tuolumne, Mendocino, and Sutter), 29 experienced a decline (Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, Solano, Los Angeles, San Bernardino, San Diego, Ventura, Monterey, Fresno, Kern, Kings, Madera, Merced, Placer, Sacramento, San Joaquin, Stanislaus, Amador, Butte, El Dorado, Lake, Mendocino, Shasta, Yolo, Yuba), and eight were unchanged (Sonoma, Orange, Riverside, San Luis Obispo, Santa Cruz, Tulare, Humboldt, and Sutter).

    • During the second quarter of 2017, the most affordable counties in California were Tehama (57 percent), Kern (54 percent), Sutter, (53 percent), Kings and Tulare (both at 52 percent).

    • San Francisco (12 percent), San Mateo (14 percent), and Santa Barbara (16 percent), Santa Clara and Santa Cruz (both at 17 percent) counties were the least affordable areas in the state.

    • Housing affordability figures are now available for the following counties: Amador, Butte, El Dorado, Humboldt, Lake, Mariposa and Tuolumne (combined), Mendocino, San Benito, Shasta, Siskiyou, Sutter, Tehama, Yolo, and Yuba. See accompanying tables.

    Housing Affordability slides (click link to open)

    Affordability peak versus current
    Annual required income peak vs. current
    PITI peak versus current
    Median home price peak vs. current
    CA housing affordability by quarter (2006-2017)
    Housing affordability by county


    See C.A.R.'s historical housing affordability data.
    See first-time buyer housing affordability data.

    Leading the way?® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

    # # #

    CALIFORNIA ASSOCIATION OF REALTORS®
    Traditional Housing Affordability Index
    Second Quarter 2017

    C.A.R. Region Housing
    Affordability Index
    Median Home
    Price
    Monthly Payment Including Taxes & Insurance Minimum
    Qualifying Income
    CA SFH (SAAR) 29 $ 553,260 $ 2,770 $ 110,890
    CA Condo/Townhomes 38 $ 443,400 $ 2,220 $ 88,870
    Los Angeles Metro Area 31 $ 491,250 $ 2,460 $ 98,470
    Inland Empire 43 $ 342,050 $ 1,710 $ 68,560
    S.F. Bay Area 21 $ 895,000 $ 4,480 $ 179,390
    S.F. Bay Area
    Alameda 19 $ 880,000 $ 4,410 $ 176,390
    Contra-Costa (Central Cty) 31 $ 655,000 $ 3,280 $ 131,290
    Marin 17 $ 1,302,500 $ 6,530 $ 261,070
    Napa 25 $ 683,000 $ 3,420 $ 136,900
    San Francisco 12 $ 1,450,000 $ 7,270 $ 290,630
    San Mateo 14 $ 1,469,000 $ 7,360 $ 294,440
    Santa Clara 17 $ 1,183,440 $ 5,930 $ 237,210
    Solano 44 $ 412,000 $ 2,060 $ 82,580
    Sonoma 25 $ 625,000 $ 3,130 $ 125,270
    Southern California
    Los Angeles 28 $ 514,220 $ 2,580 $ 103,070
    Orange County 21 $ 788,000 $ 3,950 $ 157,950
    Riverside County 39 $ 380,000 $ 1,900 $ 76,170
    San Bernardino 51 $ 269,640 $ 1,350 $ 54,050
    San Diego 26 $ 605,000 $ 3,030 $ 121,260
    Ventura 27 $ 635,000 $ 3,180 $ 127,280
    Central Coast
    Monterey 21 $ 603,000 $ 3,020 $ 120,860
    San Luis Obispo 26 $ 565,000 $ 2,830 $ 113,250
    Santa Barbara 16 $ 750,000 $ 3,760 $ 150,330
    Santa Cruz 17 $ 850,000 $ 4,260 $ 170,370
    Central Valley
    Fresno 47 $ 250,000 $ 1,250 $ 50,110
    Kern (Bakersfield) 54 $ 232,500 $ 1,170 $ 46,600
    Kings County 52 $ 225,000 $ 1,130 $ 45,100
    Madera 44 $ 259,900 $ 1,300 $ 52,090
    Merced 48 $ 248,000 $ 1,240 $ 49,710
    Placer County 43 $ 465,000 $ 2,330 $ 93,200
    Sacramento 45 $ 340,000 $ 1,700 $ 68,150
    San Benito 33 $ 530,000 $ 2,660 $ 106,230
    San Joaquin 43 $ 336,940 $ 1,690 $ 67,540
    Stanislaus 47 $ 288,500 $ 1,450 $ 57,830
    Tulare 52 $ 220,000 $ 1,100 $ 44,100
    Other Counties in California
    Amador 42 $ 340,000 $ 1,700 $ 68,150
    Butte County 39 $ 305,850 $ 1,530 $ 61,300
    El Dorado County 40 $ 480,000 $ 2,410 $ 96,210
    Humboldt 36 $ 299,000 $ 1,500 $ 59,930
    Lake County 38 $ 250,000 $ 1,250 $ 50,110
    Mariposa And Tuolumne 46 $ 284,390 $ 1,430 $ 57,000
    Mendocino 27 $ 400,000 $ 2,000 $ 80,180
    Shasta 47 $ 259,900 $ 1,300 $ 52,090
    Siskiyou County 47 $ 216,500 $ 1,080 $ 43,390
    Sutter 53 $ 271,000 $ 1,360 $ 54,320
    Tehama 57 $ 202,000 $ 1,010 $ 40,490
    Yolo 35 $ 430,000 $ 2,150 $ 86,190
    Yuba 43 $ 270,000 $ 1,350 $ 54,120

    CALIFORNIA ASSOCIATION OF REALTORS®
    Traditional Housing Affordability Index
    Second Quarter 2017

    STATE/REGION/COUNTY Q2 2017 Q1 2017 Q2 2016
    CA SFH (SAAR) 29 32 31
    CA Condo/Townhomes 38 40 40
    Los Angeles Metropolitan Area 31 33 33
    Inland Empire 43 43 46
    S.F. Bay Area 21 25 23 r
    S.F. Bay Area
    Alameda 19 21 23 r
    Contra-Costa (Central County) 31 37 35 r
    Marin 17 18 18
    Napa 25 24 26
    San Francisco 12 13 13
    San Mateo 14 15 14
    Santa Clara 17 19 19
    Solano 44 45 45
    Sonoma 25 25 26
    Southern California
    Los Angeles 28 29 30
    Orange County 21 21 22
    Riverside County 39 39 41
    San Bernardino 51 52 56
    San Diego 26 28 28 r
    Ventura 27 28 r 33 r
    Central Coast
    Monterey 21 23 25
    San Luis Obispo 26 26 27
    Santa Barbara 16 14 19 r
    Santa Cruz 17 17 17
    Central Valley
    Fresno 47 48 48 r
    Kern (Bakersfield) 54 55 55 r
    Kings County 52 53 54 r
    Madera 44 47 51 r
    Merced 48 50 51 r
    Placer County 43 45 47 r
    Sacramento 45 46 46 r
    San Benito 33 32 36
    San Joaquin 43 45 45
    Stanislaus 47 48 48
    Tulare 52 52 50
    Other Counties in California
    Amador 42 47 50
    Butte County 39 41 43
    El Dorado County 40 43 38
    Humboldt 36 36 42 r
    Lake County 38 43 44
    Mariposa And Tuolumne 46 45 51
    Mendocino 27 26 34 r
    Shasta 47 49 48 r
    Siskiyou County 47 48 54 r
    Sutter 53 53 55 r
    Tehama 57 55 60
    Yolo 35 37 36 r
    Yuba 43 44 47 r

    r = revised

    Created: 8/21/2017 10:44:51 AM