San Diego’s available supply of existing, single-family detached homes for resale rose in January, while the median price fell slightly, according to the California Association of Realtors (CAR).
The available supply of existing, single-family detached homes increased to 5.2 months in January, up from 3.6 months in December and 4.1 months in January 2013.
Resales in January fell 22.7 percent from December and 21.9 percent from January 2013.
The median number of days it took to resell a single-family home also increased to 35 days in January, up from 34.4 days in December and down from a revised 37.7 days in January 2013.
The median price of an existing, single-family detached home fell 0.l percent to $479,340 in January from $479,690 in December, but was still up 22.6 percent from $390,890 in January 2013.
Statewide, closed escrow sales of existing, single-family detached homes totaled a seasonally adjusted annualized rate of 363,640 units in January, according to information collected by CAR from more than 90 local Realtor associations and multiple listing services (MLSs) statewide.
January marked the third straight month that sales were below the 400,000 level and the sixth straight decline on a year-over-year basis.
Resales in January inched up 0.3 percent from a revised 362,430 in December, but were down 13.8 percent from a revised 421,780 in January 2013.
The statewide resales figure represents what would be the total number of homes sold during 2014 if resales maintained the January pace throughout the year.
It is adjusted to account for seasonal factors that typically influence home resales.
“The underlying fundamentals for housing demand exists, however, constrained inventory is holding back a stronger recovery as affordability becomes an issue for current homeowners who are reluctant to move due to less attractive mortgage rates and more restrictive lending standards,” said CAR President Kevin Brown. “Supply conditions in the lower-priced segment were especially tight as inventory for homes priced below $300,000 fell 13.4 percent from the previous year, while inventory for homes priced $1 million and higher increased 11.1 percent from last year.”
The statewide median price of an existing, single-family detached home fell 6.2 percent from December’s revised median price of $438,090 to $410,990 in January.
January’s price was 22.1 percent higher than the revised $336,650 recorded in January 2013, marking 23 consecutive months of year-over-year price increases and the 19th straight month of double-digit annual gains, as resales of higher priced homes made up a larger share of the market compared to a year ago.
“The decline in the January median price was the largest in a year but is typical between December and January, with that decline averaging nearly 9 percent over the last six years,” said Leslie Appleton-Young, CAR vice president and chief economist. “The statewide median price was pulled down by a change in the mix of sales, as resales in higher-priced areas such as the Bay Area, Los Angeles, Orange, San Diego and Ventura counties fell much sharper than in lower-priced areas.”
Statewide, housing inventory improved in January as home sellers geared up to resell their homes for the spring home-buying season.
The available supply of existing, single-family detached homes for sale rose in January to 4.3 months, up from December’s Unsold Inventory Index of 3. The index was 3.5 months in January 2013.
The index indicates the number of months needed to resell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.
The median number of days it took to resell a single-family home also increased to 44.3 in January, up from 40.2 in December and from a revised 36.7 in January 2013.
Mortgage rates dipped in January, with the 30-year, fixed-mortgage interest rate averaging 4.43 percent, down from 4.46 percent in December but up from 3.41 percent in January 2013, according to Freddie Mac.
Adjustable-mortgage interest rates in January averaged 2.55 percent, down from 2.56 in December and down from 2.58 percent in January 2013.