Sales of californian property up seven months in a row

San Francisco, the highest price per square foot in August ($770) Photo: JeffGunn

Sales of Californian property have risen seven months in a row, according to new figures.

The state's housing market cooled in the month following a hotter than usual summer, according to the California Association of Realtors. Sales dipped 3.8 per cent from July. Despite that decline, though, sales still rose year-on-year for the seventh month in a row, climbing 9.3 per cent compared with August 2014 - higher than the six-month average increase of 8.6 per cent.

Indeed, home sales remained above the 400,000 mark in August for the fifth consecutive month and rose to the highest level since October 2012.

The median price of an existing, single-family detached California home edged up 1 per cent in August to $493,420 from a revised $488,470 in July. August’s median price was 2.5 per cent higher than the revised $481,240 recorded in August 2014.

"Home prices are finally increasing at a healthier pace, and the smallest year-over-year statewide median price gain in nearly three and a half years suggests that home prices are stabilizing," says C.A.R. President Chris Kutzkey. "Supply constraints in the Bay Area will continue to fuel appreciation for the rest of the year, but the upward pressure in price will be counterbalanced by sales increases in more affordable areas such as the Central Valley and the Inland Empire."

"The anticipation of higher mortgage rates and reduced affordability, coupled with global instability and stock market volatility may create an environment of uncertainty that could impact the current momentum in the market," cautions C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "We’re on track to post stronger than expected home sales for 2015, with the last quarter moderating but still solid. Strong sales in the Central Valley and Inland Empire markets should help to propel statewide sales higher, thanks to better affordability and greater housing supply, while sales soften in the Bay Area."