California Home Sales, Prices Dip in January

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According to the California Association of Realtors (C.A.R.), a typical seasonal slowdown coupled with a scarcity of available homes for sale put a damper on the California housing market in January 2013.

"A rush by home buyers trying to complete sales of higher-priced homes by the end of last year in order to avoid capital gains increases pulled forward sales that might have closed in January instead," said C.A.R. President Don Faught.  "Additionally, the extreme shortage of homes for sale continues to hinder California's housing market, as demonstrated by the nearly two months'-supply drop compared with last year."

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 491,720 units, according to information collected by C.A.R. from more than 90 local Realtor associations and MLSs statewide.  Sales in January were down 6 percent from a revised 523,090 in December and down 3.9 percent from a revised 511,760 in January 2012.  The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the January pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home fell 8.1 percent from December's $366,930 median price to $337,040 in January.  January's price was up 24.1 percent from a revised $271,490 recorded in January 2012, marking the 11th consecutive month of annual price increases and the seventh consecutive month of double-digit annual gains.

"The drop in the median price from December to January is in line with the seasonal pattern that we've observed in recent years, when the sales share of lower-priced homes usually increases at the start of the year," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  "For example, homes priced under $200,000 made up 28 percent of sales in January, up from 25 percent in December.  Conversely, homes priced $500,000 and higher made up nearly 24 percent of sales in January, down from nearly 28 percent in December."