August Home Sales and Price Report
California’s housing market falters for fourth straight month as high home prices take toll on demand, C.A.R. reports
- Existing, single-family home sales totaled 399,600 in August on a seasonally adjusted annualized rate, down 1.8 percent from July and down 6.6 percent from August 2017.
- August’s statewide median home price was $596,410, up 0.8 percent from July and up 5.5 percent from August 2017.
- Statewide active listings rose for the fifth consecutive month, increasing 17.2 percent from the previous year.
LOS ANGELES (Sept. 17) – California’s housing market dropped below the 400,000-level sales benchmark for the first time in more than two years as high home prices and eroding affordability combined to cut into housing demand, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 399,600 units in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2018 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
August’s sales figure was down 1.8 percent from the revised 406,920 level in July and down 6.6 percent compared with home sales in August 2017 of 427,630.
“Home sales activity remained on a downward trend for the fourth straight month as uncertainty about the housing market continues to mount,” said C.A.R. President Steve White. “Buyers are being cautious and reluctant to make a commitment as they are concerned that home prices may have peaked and instead are waiting until there’s more clarity in the market.”
The statewide median home price edged up to $596,410 in August. The August statewide median price was up 0.8 percent from $591,460 in July and up 5.5 percent from a revised $565,320 in August 2017.
“While home prices continued to rise modestly in August, the deceleration in price growth and the surge in housing supply suggest that a market shift is underway,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “We are seeing active listings increasing and more price reductions in the market, and as such, the question remains, ‘How long will it take for the market to close the price expectation gap between buyers and sellers?’”
Other key points from C.A.R.’s August 2018 resale housing report include:
• On a region wide, non-seasonally adjusted basis, the Southern California region led the state’s sales decline, falling 8.0 percent from a year ago. San Diego experienced a double-digit decline of 10.4 percent, while Orange and Los Angeles counties posted smaller declines of 9.7 percent and 8.9 percent, respectively.
• Sales in the Bay Area inched up 0.3 percent from July and declined 6.5 percent from August 2017. While Marin and Napa counties posted significant gains, they make up a small percentage of the region’s overall sales. Every other Bay Area county experienced a sales decline with San Mateo performing relatively better than the others, recording a modest 1.8 percent annual decline. San Francisco County saw a double-digit sales drop, and sales in Santa Clara County decreased 8.2 percent. Sales in Contra Costa County were down by more than 10 percent in August, while Solano and Sonoma fell by 8.9 percent and 7.7 percent, respectively.
C.A.R. News Release:
California REALTORS® file revised ballot initiative to eliminate moving penalty on seniors, disabled and unlock housing market
LOS ANGELES (Aug. 7) In its continuing effort to address California’s unprecedented housing supply crisis and eliminate the “moving penalty” that 
severely restricts the ability of seniors, disabled residents, and victims of natural disasters to relocate, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) has filed a revised initiative with the Attorney General for preparation of title and summary for the November 2020 ballot. The new initiative would:
• Remove the “moving penalty” for seniors 55 and older, the disabled, victims of natural disasters, and those whose homes are located on contaminated property, allowing them to carry their current Proposition 13-protected property tax assessment level to another home of any price, anywhere in the state, any number of times.
• Eliminate intergenerational transfers of primary residences and other inherited property being used as income-producing properties without reassessment.
• Address abuses by commercial property owners who avoid property tax reassessment by means of “creative” transfers.
“Filing this new initiative will allow C.A.R. – in the event the ‘moving penalty’ is not eliminated this November – to immediately begin gathering signatures to qualify the new initiative for the November 2020 ballot and reinforce our commitment to making tax fairness a reality,” said C.A.R. President Steve White. “This new initiative will provide for property tax base portability, reform the intergenerational transfer laws, and address the true ‘split roll’ problem – corporations gaming the current property tax reassessment system. And, most significantly, it will raise money for schools and local governments,” stated White.
An initiative opposed by C.A.R. to tax commercial property at a higher rate than residential property has already qualified for the November 2020 ballot.
Last October, the Legislative Analyst’s Office issued a report in which it noted that the state is losing $1.5 billion per year due to parent/child and grandparent/grandchild property transfers. C.A.R.’s new initiative would require the child/grandchild to reside in the home (as opposed, for example, to renting out the home), and limit the value of the exemption to $1 million.
Current law requires at least 50 percent of a company to be transferred in order for reassessment of that company’s real property holdings to be reassessed. C.A.R.’s new initiative states that regardless of the increments of transfer, if a total of 90 percent of a company is transferred, the real property holdings of the company must be reassessed.
C.A.R. has already qualified an initiative for the November 2018 ballot, now known as Proposition 5, which addresses the “moving penalty” on seniors, the disabled, victims of natural disasters, and those whose homes are located on contaminated property.
Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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