Sales of californian homes at three-year low

Photo: Bankforeclosuresale

"Rapid home value appreciation in the West, particularly California, is currently having a very positive effect on a number of other factors, including negative equity, foreclosure activity and the overall financial health of local homeowners," Zillow Chief Economist Dr. Stan Humphries said in December.

Rising house prices, though, have also acted as a deterrent for investors, according to the CAR, whose latest report shows that sales of Californian homes fell in November for the fourth month in a row.

Transactions dipped 3.4 per cent month-on-month and 12 per cent year-on-year to a total of 387,520 in November 2013 - the lowest monthly amount since July 2010.

"The demand for housing could remain soft in the upcoming months as buyers and sellers continue to search for a level playing field in the market," says CAR vice president and chief economist Leslie Appleton-Young.

The statewide average price of single-family homes also fell on a monthly scale, dipping 1.2 per cent from October to $422,210. Nonetheless, house prices are 22.2 per cent higher than November 2012, the 17th month of double-digit year-on-year increases in a row.