According to a California Realtor’s Association’s press release (July 18th, 2016), California existing home sales rose to their highest level in nearly four years in June. More than 450,000 single-family homes were sold in June. The June sales figure was up 10% from the level of May 2016, and up 2% from the same month a year ago.
Demand for housing is high, but inventory is tight especially at the low end of the market. “This keeps competition for those homes at an extremely high level,” said C.A.R. President Pat Zicarelli.
High demand coupled with tight supply kept upward pressure on prices. The median price of a single-family home in California increased 5.5 % in June to $519,440 from $492,320 in June 2015.
Mortgage rates are going to remain low thanks to Brexit and other global economic uncertainty. In June, the average 30-year, fixed-mortgage interest rate was 3.57 percent, compared with 3.60 percent in May and 3.98 percent in June 2015, according to Freddie Mac.
Unfortunately, the market will remain very tough for the first time home buyers in the unforeseeable feature.