California housing market news and trends report for april 2019

Here is a summary of the California housing market news and trends report for April 2019:

Market Overview

The California housing market continued to experience a slowdown in April 2019, with sales and prices declining from the previous year. The market is still recovering from the impact of the Tax Cuts and Jobs Act (TCJA), which limited the mortgage interest deduction and reduced demand.

Sales

• California home sales declined 14.1% year-over-year in April 2019, with 43,300 homes sold.
• The median sales price decreased 3.4% to $540,000, the lowest level since October 2018.
• The number of active listings increased 14.1% year-over-year, providing more inventory for buyers.

Prices

• The median sales price in California decreased 3.4% year-over-year to $540,000.
• The price decline was driven by a 5.1% drop in the San Francisco Bay Area, where the median sales price fell to $1,035,000.
• The Los Angeles-Long Beach-Anaheim area saw a 2.1% price decline to $640,000.

Inventory

• The number of active listings in California increased 14.1% year-over-year to 74,400 homes.
• The inventory increase was driven by a 21.1% jump in the San Francisco Bay Area, where there are now 12,400 homes for sale.
• The Los Angeles-Long Beach-Anaheim area saw a 10.3% increase in inventory to 24,400 homes.

Interest Rates

• The 30-year fixed mortgage rate averaged 4.27% in April 2019, down from 4.47% in March 2019.
• The decline in interest rates helped to boost buyer demand, but the impact was limited by the ongoing slowdown in the market.

Regional Trends

• The San Francisco Bay Area continued to experience a slowdown, with sales and prices declining due to the high cost of living and limited inventory.
• The Los Angeles-Long Beach-Anaheim area saw a more moderate decline in sales and prices, driven by a mix of affordability concerns and inventory issues.
• The Central Valley and Inland Empire regions experienced a more stable market, with sales and prices holding steady or increasing slightly.

Forecast

• The California Association of Realtors (CAR) predicts that the state's housing market will continue to slow in the short term, with sales and prices declining further in the next few months.
• However, the CAR also expects the market to stabilize and potentially recover in the second half of 2019, driven by lower interest rates and increased inventory.

Sources

• California Association of Realtors (CAR)
• California Department of Finance
• National Association of Realtors (NAR)
• Zillow
• Redfin