Categorized | Residential

California Residential Property Sales Struggle in September

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Overall home sales in California’s residential real estate market fell in comparison to its performance from the previous month. Residential property sales dropped more than five percent month-over-month.

Despite the monthly drop in sales, real estate analysts are not overly pessimistic about the state of the market. Sales typically drop in the month of September as the summer season closes. Furthermore, many of the sales that would’ve happened in September were rushed and finalized in August to beat the anticipated changes in mortgage loan limits.

Sales were up nearly eight percent from one year earlier, marking the fifth straight month during which there was an increase in sale volume of houses compared to one year earlier.

Overall inventory of residential real estate properties remains down, thus attributing to the decline in sales in September. More foreclosures are expected to hit the market in the coming months, which should add to the current inventory. However, an increase in foreclosure properties will likely lead to a decrease in home values in the coming months.

The decline in sales in California during the month of September is consistent with the overall market on the West Coast. The West Coast of the United States experienced a decline of roughly nine percent in the last quarter, which was the largest drop of any region.

While analysts are not overly concerned about the number of sales during the month of September, there are feelings of uncertainty regarding the anticipated performance of the market in coming months. The banks continue to remain very stringent with respect to the lending of mortgage loans, and with the current limited inventory, the sales numbers may continue to drop in the coming months.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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