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San Diego home prices climb, resales down

The median price of San Diego's resale homes continued to increase in June, while sales fell and inventory increased slightly, according to the California Association of Realtors (CAR).

The median price of an existing, single-family detached home in San Diego was $531,350 in June, up 6.7 percent from May and up 9.9 percent from June 2013.

Resale activity fell 2 percent in June from May, and were down 10.2 percent from June 2013.

San Diego’s available supply of existing, single-family detached homes for sale was 4 months in June, up from 3.8 in May and 3.2 in June 2013.

It took a median of 24.1 days to sell a single-family home in June, down from 24.8 in May and unchanged from June 2013.

Statewide, closed escrow resales of existing, single-family detached homes totaled a seasonally adjusted annualized rate of 394,930 units in June, according to information collected by CAR from more than 90 local Realtor associations and MLSs (multiple listing services) statewide.

June marked the eighth straight month that sales were below the 400,000 level and the 11th straight decline on a year-over-year basis.

Resales in June increased 1.5 percent from a revised 389,060 in May but were down 4.8 percent from a revised 414,830 in June 2013.

The statewide resales figure represents the total number of homes resold during 2014, if resales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home resales.

“While June home sales rose at the statewide level, the market is still constrained by tight supply and low housing affordability in areas of high demand, where job growth is robust and international buyers have a strong presence,” said CAR President Kevin Brown. “Overall, however, with inventory improving and home sales slowly moving back up, the market is more balanced and we could see further market normalization in the upcoming months, as interest rates remain at the lowest levels we’ve seen so far this year.”

The statewide median price of an existing, single-family detached home in June was $457,160, 2 percent lower than May, but 6.6 percent higher than June 2013.

The statewide median home price has increased year over year for the previous 28 months, marking more than two full years of consecutive year-over-year price increases.

The median resale price is the point at which half of homes resold for more and half for less; it is influenced by the types of homes reselling as well as a general change in values.

“Home prices are finally increasing at a healthier pace, and the smallest year-over-year price gain in more than two years suggests that prices are stabilizing,” said Leslie Appleton-Young, CAR vice president and chief economist.

“Last year’s frenzied market of multiple offers, which drove sales prices above listing prices, has tapered off as the sales-to-list price ratio has dropped to a more normal level at nearly 99 percent, which signals a return to a more balanced market,” Appleton-Young said.

The available supply of existing, single-family detached homes for resale in California was 3.7 months in June, up from 3.6 in May and 2.9 in June 2013.

The index indicates the number of months needed to resell the supply of homes on the market at the current resales 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 was 33.9 days in June, up from 31.6 in May and 27.8 in June 2013.

Mortgage rates dipped in June -- with the 30-year, fixed-mortgage interest rate averaging 4.16 percent, down from 4.19 in May but up from 4.07 in June 2013, according to Freddie Mac.

Adjustable rates in June averaged 2.4 percent, down from 2.43 in May and down from 2.6 in June 2013.

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