The number of single-family homes that changed ownership in the San Diego region in May surged despite a continuing climb in prices, reflecting a trend that occurred throughout the state, the California Association of Realtors (CAR) reported Tuesday.
The number of houses that sold last month in San Diego County was 16.1 percent higher than the month before, and 4.1 percent above the same period last year, according to CAR data. Sales totals have been constrained because of a lack of inventory.
The median sales price in the region in May was $605,000, or $15,000 above April. The figure was $40,000 above that of May 2016.
CAR reported the median sales price for a house statewide in May was $550,200, the highest in almost a decade. That's 2.3 percent above April and 5.8 percent more than May of last year.
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Statewide sales totals were 5.4 percent higher from the month before and 2.6 percent from the year before.
"Mortgage rates dropping to the lowest level since November could have been a motivating factor for the sales increase in May," said CAR President Geoff McIntosh. "The low interest rate environment, however, may not last long as the Federal Reserve's gradual rate hike and plan to reduce its balance sheet will likely lead to higher rates, and could change the momentum of the market."
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CAR Senior Vice President and Chief Economist Leslie Appleton-Young noted a disconnect between buyers and available homes for sale will continue to elevate prices and worsen the affordability problem.
New active listings around California declined for the 23rd straight month in May, falling 12.4 percent from a year ago. The drop, associated with May's heightened sales figures, will combine to make the inventory problem even worse, according to CAR.
