POST Online Media Lite Edition



 

California mortgage surpassed 5 percent for first time since April 2010

Christian Fernsby |
California's housing market started showing signs of a market shift in May.

Article continues below




The monthly average 30-year fixed rate mortgage surpassed 5 percent for the first time since April 2010 leading to the lowest sales level since June 2020, and the largest year-over-year decline in five months, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.) said.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 377,790 in May, 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 2022 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

May's sales pace was down 9.8 percent on a monthly basis from 419,040 in April and down 15.2 percent from a year ago, when 445,660 homes were sold on an annualized basis.

Home sales dipped below the 400,000 level for the first time since June 2020.

While public health concerns and market uncertainty were the triggering factors that resulted in the sales decline two years ago, tight supply and the higher cost of borrowing were responsible for the near double-digit decline this time around.

California's median home price set another record in May at $898,980 — surpassing the record set in April of $884,890. The May price was 1.6 percent higher than the April median price and 9.9 percent higher than the $818,260 recorded last May. This can largely be attributed to the mix of sales with the high-end market continuing to outperform the more affordable market segments.

The share of million-dollar home sales increased for the fourth straight month and reached the highest level on record at 35.3 percent, while home sales priced below $500,000 dipped again in May and hit the lowest level of all time.

Home prices could be leveling off though, as the monthly gain in price appears to be moderating.

The month-over-month increase of 1.6 percent in the May median price was still higher but only slightly above the long run average of 1.1 percent recorded between April and May in the last 43 years.

At the regional level, all major regions declined in sales from last year, with four of the five regions falling by double-digits on a year-over-year basis. The Central Coast region continued to have the biggest decline of all regions, with sales dropping 21.8 percent from a year ago.

Compared to the pre-pandemic average calculated using sales from May 2017, May 2018, and May 2019, the region's sales in May 2022 were also down 19.8 percent.

Southern California (-14.3 percent), the Central Valley (-12.2 percent) and the San Francisco Bay Area (-11.5 percent) also dipped in sales from last May by double-digits, while the Far North (-4.0 percent) was the only region with a more moderate decline year-over-year.

Three quarters (74.5 percent) of all counties tracked by C.A.R. experienced a decline in sales from a year ago in May 2022, compared to 80.4 percent in the prior month. Thirty counties in California fell more than 10 percent from last year, with Plumas dropping the most at -46.3 percent, followed by Mono (-33.3 percent) and Santa Barbara (-29.0 percent).

Counties with a sales decline had an average decrease of -15.7 percent in May.

Twelve counties increased in sales on a year-over-year basis in May, compared to nine counties in April. Del Norte (200.0 percent) had the largest sales growth from last year, followed by Siskiyou (53.5 percent) and Mariposa (50.0 percent). On a year-to-date basis, Plumas had the largest decline in sales of -35.5 percent so far this year, while Yuba (+41.2 percent) continued to have the best sales performance of all counties.

At the regional level, home prices in all major California regions increased in price from last year by more than 10 percent, with the Far North and Southern California setting new record medians in May.

The Far North also had the highest year-over-year growth in price with a surge of 16.4 percent, followed by the Central Valley (12.4 percent), the San Francisco Bay Area (12.3 percent), Southern California (11.9 percent), and the Central Coast (10.6 percent).

At the county level, home prices continued to rise across the state,15 counties in California set new record median highs in May.

Forty-five out of 51 counties tracked by C.A.R. increased in their median prices in May, with 31 of them rising 10 percent or more from a year ago.

Marin had the biggest year-over-year gain in median price at 28.7 percent, followed by Siskiyou (27.3 percent) and Napa (25.2 percent).

Five counties dipped in median price from last year, with Santa Barbara dropping the most at -30.7 percent, followed by Mono (-23.7 percent) and Del Norte (-22.9 percent).

The overall supply condition in California improved further in May, with the statewide unsold inventory index (UII) surging from the prior month and from the same month of the prior year.

The UII climbed back above 2 months for the first time in three months, and the improvement in the index was partly due to an increase in supply and partly due to a pullback in demand.

With both closed sales and pending sales slowing by double-digits, total active listings experienced a gain of 46.7 percent in May, the largest year-over-year growth in at least the last 89 months. Active listings in May also climbed to the highest level since July 2020 and had a month-to-month increase of 26.4 percent from April.

Forty-four of the fifty-one counties tracked by C.A.R. increased in active listings on a year-over-year basis in May, compared to forty counties in April.

For the third straight month, Yuba had the biggest increase in supply with a gain of 191.8 percent in active listings from last May. Placer (108.2 percent), Nevada (106.0 percent), and Contra Costa (102.4 percent) were three other counties that also experienced a triple-digit increase in active listing from a year ago.

On the other end of the spectrum, seven counties declined in for-sale properties when compared to the same month of last year, with Del Norte dropping the most at -30.5 percent, followed by Plumas (-26.6 percent) and Napa (-23.9 percent).

The median number of days it took to sell a California single-family home was 9 days in May and 7 days in May 2021.

C.A.R.'s statewide sales-price-to-list-price ratio was 103.4 percent in May 2022 and 103.8 percent in May 2021.

The statewide average price per square foot for an existing single-family home was $436, up from $387 in May a year ago.

The 30-year, fixed-mortgage interest rate averaged 5.23 percent in May, up from 2.96 percent in May 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 4.06 percent, compared to 2.62 percent in May 2021.


What to read next

30-year mortgage rates highest in years
One decade after housing bust, mortgage industry on shaky ground
Mortgage rates at 2nd-lowest level on record

Tracking areas of severe thunderstorms, excessive rainfall, and excessive heat in U.S.

 
The relentlessly active spring weather pattern is set to continue through the holiday weekend as two separate systems are anticipated to be responsible for numerous showers and thunderstorms across the middle of the nation.
 
 

Latest

U.S. drillers cut oil and gas rigs to 600
North Carolina Governor to lead economic development trip in Europe
Google expanding connectivity in Africa with Umoja
Bentley opens workshop in Bulgaria

NEWS

Italy: EPPO seizes assets in investigation into €650 000 fraud involving agricultural funds

Italy draws up emergency plans for Campi Flegrei super volcano
New fire at Novo Nordisk, this time at headquarters
Iran releases first investigation report on President Raisi's helicopter crash
Another round of heavy rainfall and severe storms impacting southern U.S.
French growers protest Moroccan imports
 

BUSINESS

U.S oil and gas rigs count increased by 1 to 604

NYCEDC supporting major battery energy storage project in New York City
U.S. drillers cut oil and gas rigs to 603
Number of U.S. oil and natural gas rigs down
U.S. added 2 oil rigs
U.S. oil rig count up by 5 to 511
 

Trending Now

U.S. drillers cut oil and gas rigs to 600

Belgium second EU country to authorise bluetongue vaccine

Potentially habitable 'exo-Venus' with Earth-like temperature discovered

Iran releases first investigation report on President Raisi's helicopter crash


POLITICS

Poland signs $960m deal for U.S. radar balloons

Governor Moore announces renewal and expansion of economic MoU with South Australia
Governor Parson to embark on trade mission to Italy to promote Missouri as ideal business location
Governor Abbott hosts Kosovo President Osmani
Australian government to set up inquiry to examine impact of social media
Hungary and China sign 19 cooperation agreements during Xi's visit
 

Today We Recommend

Poland signs $960m deal for U.S. radar balloons


Highlights 

Georgia: First Quality in Macon to create 600 new jobs

Afreximbank delivers strong Q1 results

Ralph Lauren Q4 earnings per diluted share $1.38


COMPANIES

Georgia: First Quality in Macon to create 600 new jobs

Hollywood makeup brand Ben Nye files for bankruptcy as it faces talc cancer lawsuits
SEG Solar and Grand Batang City sign land utilization deal for Southeast Asia's largest PV industrial park
Bulgaria demands €400 million from Gazprom for suspended gas supplies
BlueHalo to expand operations, adding 200 new jobs in Maryland
Maersk speeds up supply chains in Europe with new Cross Dock facility
 

CAREERS

BioMar announces changes in management in Ecuador

CLG appoints managing director for Equatorial Guinea
Mark Gazit appointed executive chairman of N.E.W.S.
IFCO appoints Sebastian Grams as chief digital officer
Marlabs appoints Arun Mukunda as CRO
AfdB names Ambassador Jalel Trabelsi as Special Envoy for Middle East and North Africa and Gulf region
 

ECONOMY

Eurozone reports modest Q1 GDP growth, stable annual inflation

Italy sees faster economic growth in Q1
Slovenia's economy expected to grow 0.9 pct in Q1
Italy faces deficit infringement procedure
Real GDP increased in all 50 U.S. states
Inflation continues to decline in Germany
 

EARNINGS

Macy's Q1 diluted earnings per share $0.22

Afreximbank delivers strong Q1 results
Ralph Lauren Q4 earnings per diluted share $1.38
Dubai World Trade Centre economic output surges to $4.98 billion in 2023
Dole Q1 revenue $2.1 billion
Hapag-Lloyd Q1 EBITDA $942 million
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Belgium second EU country to authorise bluetongue vaccine

UK government unveils major package of farming and food sector support
Governor Desantis signs legislation to keep lab-grown meat out of Florida
Tanzania, Kenya resolve poultry export dispute
FAO Food Price Index rises in March
Australia grants license for GM bananas amid Fusarium Wilt TR4 concerns
 

LEADERSHIP

Study finds workers misjudge wage markets

Some organizations may need to expand their hierarchical structures earlier than others
Study finds there's right way and wrong way to deliver negative feedback in workplace
Allyship is critical and its needs appreciation
Generating 'buzz' about new products can influence their success
Hiring 'problem directors' can knock up to 64% off firm's value
 

CRIME

EU Commission fines Mondelēz €337.5 million for cross-border trade restrictions

HSBC pays penalties for alleged breaches of Consumer Data Right rules
Sanofi to settle thousands of Zantac cancer lawsuits
Former asset manager and board member of Geneva private bank referred to Swiss Federal Criminal Court
South Africa: SAP ordered to pay SIU $26m over 'invalid' Eskom contracts
Former Steinhoff director appears in court for $1.1b fraud, racketeering
 

Magazine

TRAVEL

Morocco’s first Radisson branded hotel opens in Casablanca

Buna channels, an unreal and beautiful part of Bosnia and Herzegovina
JW Marriott unveils Mindful Haven with opening of JW Marriott Hotel Nairobi
Sotheby's Sports Week returns with fantastic artifacts
Red Roof properties open in Michigan
Treyam, your premier lagoon destination in Saudi Arabia
 

SEA, LAND, AIR

2025 Chevrolet Equinox stands apart with fresh looks and capability

Hill Helicopters HX50, luxury in the sky
Opel Movano becomes fully equipped camper van
Porsche Panamera, new hybrid variants
Dodge Charger, 670 horsepower of electric
Pagani Huayra R Evo, 900 hp from 770 Nm
 

DESIGN

Cold night, hot fire pit, cool entertainment

Embellish your home with PVC panels
You'll have to hurry if you want one of 20 new Louis Vuitton watches
Luxury duvet looks good, fells good and keeps you healthy
Vacheron Constantin, watches for life and more
Schüller kitchens, where functionality marries design
 

GADGETS

reMarkable 2, monochrome tablet for your thoughts and your eyes

OnePlus Ace 3V, first with Snapdragon 7 Plus Gen 3
ASUS Zenfone 11 Ultra, flagship with a reason
Samsung Galaxy S24 is photography powerhouse
Casette tapes are making a big comeback, and so are portable players
Neumann TLM 103, standard microphone for both voice and music
 

HEALTH

UK: People with HIV can now donate eggs or sperm to start family

EU health watchdog urges vaccinations to stem surge in Whooping Cough cases
Brazil resumes insulin production after two decades
India launches first home-grown gene therapy for cancer
UK scientists win funding for 'cancer detecting' Lollipops
State to cover rare disease treatment costs in Bulgaria
 

MEANTIME

Potentially habitable 'exo-Venus' with Earth-like temperature discovered

Rare species of wild bees discovered in Berlin
SLAC completes construction of largest digital camera ever built for astronomy
Solar eclipse next week in U.S., Mexico and Canada
Gravitational waves may have made human life possible
Astronomers unveil strong magnetic fields spiraling at the edge of Milky Way's central black hole