Californians may be interested to learn that home sales were down 4.1 percent in September 2018 compared to September 2017. This decrease arrived in spite of the fact that price appreciation has slowed and Millennial buyers are in need of larger living spaces. However, it should be noted that Hurricane Florence played a role in slower sales in the South. Furthermore, interest rates on home loans are going up. While they are now 4.72 percent, they were 3.83 percent at the same point in 2017.
Considering all these factors, it’s easier to see why home sales are down. While price appreciation has slowed, home prices are still rising. The median price of a home was $258,100 as of September 2018. This was the 79th straight month that the median price went up. Those who are looking to sell their homes should also understand that September is generally a slower month for real estate transactions. Therefore, it may be necessary for sellers to remain patient regardless of market conditions.
Home sales were down in both the single-family and condo sectors. Single-family sales were down 4 percent from September 2017, and they also dropped 3.4 percent compared to August 2018. Condo sales were down 5 percent from September 2017 and were also down 3.4 percent from August 2018.
There are many factors that may come into play in a residential property transaction. Local market conditions, mortgage interest rates and the expectations of the buyer and seller could determine how easy it is to make a deal. Those who are looking to make an offer on a house may wish to consult with an attorney before doing so. Legal counsel could help ensure that an offer is in a buyer’s best interests.