Home prices dropped last month in Riverside County
RIVERSIDE, Calif. (KESQ) - Home prices dropped last month in Riverside County from $645,000 to $638,000 for an existing single-family home, as May's sales pace fell 5.1% statewide, the California Association of Realtors announced.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 254,190 in May, the association said Wednesday. Last month's sales pace fell 5.1% from the 267,710 homes sold in April and was down 4.0% from a year ago, when 264,850 homes were sold on an annualized basis.
May's sales level statewide was the lowest in four months. The year- over-year decline was the largest since December 2023, and the monthly decline was the first in 17 months. Year-to-date sales barely exceeded the same time frame in 2024 and could dip below last year's level in June if the market continues to lose momentum.
"With home prices leveling off and more homes coming onto the market, it's a great time for well-qualified buyers to enter the market,'' CAR President Heather Ozur said in a statement. "Lower prices are making homes more affordable, and the growing inventory means buyers have more choices. It's a rare window where people can find their ideal home at a good value -- making now an ideal time to buy.''
The CAR report found that sales of single-family homes in Riverside County dropped 2.5% from April to May, while prices decreased 1.1%. Home prices were $644,500 in May 2024.
Localized data is not seasonally adjusted, accounting for any discrepancies between their increases and the statewide decrease in sales.
After recording a new high in April, the California median price pulled back in May but remained above the $900,000 benchmark. Last month's median price of $900,170 declined 1.1% from April and was down 0.9% from $908,000 in May 2024. The monthly decline was below the historical average of the 1.2% increase recorded between April and May.
The statewide median price decline can be attributed to multiple factors including elevated interest rates, insurance availability/affordability, economic uncertainty and home sellers' willingness to reduce prices.
Home prices will likely come down further from April's record high as the market enters the second half of the year. Seasonality will play a role in the price moderation, and an increase in housing supply will also relieve upward price pressure.
"Although the market has slowed in recent months, there's potential for a rebound if economic concerns subside,'' said CAR Senior Vice President and Chief Economist Jordan Levine. "Consumer sentiment appears to have bottomed out and is now showing signs of improvement, which could support a
stronger housing market in the second half of the year. Buyers may take advantage of improved conditions, including deeper price reductions and increased housing inventory."
