California single-family home and condominium sales grew 8.5% to 41,539 in June, up from 38,143 in May, mainly driven by an increase in non-distressed property sales, the latest California housing report fromPropertyRadar said.
On a yearly basis, sales were up 16.4% from 35,681 in June 2014.
Non-distressed property sales jumped 19.9% year-over-year. Of note to investors, distressed property sales volume has remained nearly unchanged for 18 months and continues to remain a source of opportunity.
“After a mediocre May, California real estate sales took off in June,” said Madeline Schnapp, director of economic research for PropertyRadar. “The year-over-year jump was the largest since October 2012, likely due to improving economic conditions and fear of rising interest rates this fall.”
The median price of a California home in June increased to $415,000, the highest since November 2007.
Furthermore, the median price was up $10,000, or 2.5%, from $405,000 in May. Across the state’s 26 largest counties, 19 counties saw median price increases while 7 experienced price decreases. The counties with the biggest median price increases were San Joaquin (8.5%), San Diego (5.7%) and Ventura (5.5%).
On a yearly basis, the median price of a California home was up 5.1% from $395,000 in June 2014.
“The jump in median home prices this past June surprised us,” said Schnapp. “Despite affordability issues, demand was high enough to push median prices still higher.”