California home sales volume lays low
33,500 new and resale home transactions closed escrow in California during September 2018. The number of homes sold in September was a significant 14% lower than a year earlier, amounting to 5,500 fewer sales. Total sales volume year-to-date is 2% below 2017.
2017 ended with 461,900 home sales in California. This is 3,800 more sales than took place in 2016, amounting to an increase of less than a percent. For perspective, the 461,900 homes sold in 2017 was still 39% below peak sales volume experienced in 2005.
Home sales will continue to slow as we look to 2019, slowing the flow of agent fees. Rapidly rising prices and interest rates, along with uncertainty brought on by shifting economic policies, have discouraged potential homebuyers. Therefore, home sales volume won’t rise significantly until after home prices bottom with the next recession, expected in 2020.