California Property Report – January 2016

Property, PropertyRadar®, California Property Report, Bay Area, Monterey, Riverside, San Luis Obispo, Santa Barbara, Tulare

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January 2016 Sales Jump 3.9 Percent Y-o-Y
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CALIFORNIA, FEBRUARY 17, 2016 – California single-family home and condominium sales were 24,505 in January 2016, down 29.8 percent from a revised 34,906 in December 2015. The sharp decline in January was a typical seasonal fluctuation. On a year-ago basis sales were up 3.9 percent from a revised 23,594 in January 2015. Condominium sales were 19.1 percent of total sales compared to 18.5 percent in January 2015.

“Despite a slowdown in many national economic indicators, California single family home and condominium sales picked up in January 2016,” said Madeline Schnapp, Director of Economic Research for PropertyRadar. “California’s real estate market continues to be resilient. The extreme volatility in the equity markets has precipitated considerable outflows of cash, some of which may be finding its way into California real estate.”

In January 2016, single-family home sales fell 32.0 percent for the month but were up 3.0 percent from January 2015. Condominium sales were down 31.4 percent for the month but gained 7.4 percent year-over-year.

The January 2016 median price of a California home was $400,000, down 2.4 percent from a revised December 2015 price of $410,000. The median price of a condominium was $385,000, down 3.8 percent for the month. On a year-ago basis, median home prices were up 8.1 percent, while condominium prices gained 6.6 percent. Most of the price increases for both single-family residences and condominiums happened during the first four months of 2015. Since April 2015, prices have been trending mostly sideways.

“Affordability has become a significant issue in many coastal counties throughout the state, particularly in the Bay Area,” said Schnapp. “Recent stock market volatility and growing fears about the national economy may send investors scampering to the perceived safety of real estate, putting additional upward pressure on prices.”

January 2016 single-family home and condominium cash sales fell 25.2 percent from December 2015. On a year-ago basis, cash sales were down 9.3 percent from January 2015.

Cash sales were 21.5 percent of total sales in January 2016, in line with the average of 21.3 percent over the past six months. Of the 26 largest counties in California, the counties with the highest percentage of cash sales were Monterey (27.6 percent), Riverside (24.9 percent), San Luis Obispo (24.7 percent), Santa Barbara (27.7 percent) and Tulare (31.7 percent).

“Despite high prices, one in five real estate transactions are for cash,” said Schnapp. “In a zero interest rate environment, which may go negative in the near future, real estate investing remains an attractive alternative in an environment starved for yield.”

For more information on January 2016 California property trends, please see PropertyRadar’s Real Property Report – California, January 2016.

About PropertyRadar®
PropertyRadar provides software, data and analysis products for Real Estate professionals to find opportunities, lower risk and increase productivity. PropertyRadar has been serving its customers since 2007 (previous Brand name and older product known as ForeclosureRadar) and counts thousands of real estate investors, Realtors® and other real estate professionals among its subscribers. Bloomberg, 60 Minutes, Wall Street Journal, Los Angeles Times, San Francisco Chronicle, the Associated Press and many other leading media outlets have cited our data as the authoritative source for property-related reports, trends, graphs and insights. The company was launched in May 2007 by Sean O’Toole, who spent 15 years building software companies before entering the professional real estate market in 2002 where he successfully bought and sold more than 150 residential and commercial foreclosures.

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