February home sales and price report

California home sales gain steam in February as shift toward more affordable areas tempers home prices

- Existing, single-family home sales totaled 393,360 in February on a seasonally adjusted annualized rate, up 2.6 percent from January and 6.4 percent above February 2015.

- February’s statewide median home price was $446,460, down 4.7 percent from January and up 3.8 percent from February 2015.

- Statewide sales of condos and townhomes rose 2.6 percent from January and 6.4 percent from February a year ago.

LOS ANGELES (March 16) – Moderating home price appreciation and improving housing inventory combined to spur California’s housing market in February as existing home sales increased from both the previous month and year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 393,360 units in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2016 if sales maintained the February pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The February figure was up 2.6 percent from the revised 383,480 level in January and up 6.4 percent compared with home sales in February 2015 of a revised 369,630. February’s sales level was below the 400,000 level for the second straight month.

“While it’s encouraging that home sales were higher from both the previous month and year, it’s important to remember that sales were unusually low in the first quarter of 2015, when the housing market got off to a slow start,” said C.A.R. President Pat “Ziggy” Zicarelli. “Market activity continues to be dampened by low housing inventory as baby boomers stay in their homes longer and new home construction, while improving, falls below needed supplies.”

After accelerating for five straight months, the median price of an existing, single-family detached California home fell 4.7 percent in February to $446,460 from $468,330 in January. February’s median price was 3.8 percent higher than the revised $429,930 recorded in February 2015. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“February’s home price increase was the slowest rate of growth in six months, reflecting a shift in sales toward lower-priced, inland areas as buyers feeling the affordability crunch and tight supplies move away from urban cores to find affordable housing,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Home buyers in the Bay Area are seeking to buy in Contra Costa, Solano, or Sonoma counties, rather than San Francisco, and Southern California home buyers are moving inland to Riverside, San Bernardino, or Central Valley areas, where housing inventory is more abundant and affordable.”

Other key points from C.A.R.’s February 2016 resale housing report include:

• The number of active listings increased for the second consecutive month after declining for five straight months. Active listings increased 4.1 percent from January on a statewide basis. At the regional level, total active listings in February increased from the previous month in Southern California (2.7 percent) and the Bay Area (27.7 percent) but dipped slightly in the Central Valley (-0.4 percent).

• C.A.R.’s Unsold Inventory Index rose to 4.6 months in February from 4.3 months in January, primarily due to slower sales and an increase in active listings. The index stood at 4.9 months in February 2015. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered typical in a normal market.

• The median number of days it took to sell a single-family home declined in February to 41.6 days, compared with 44.5 days in January and 44.1 days in February 2015.

• According to C.A.R.’s sales-to-list price ratio*, properties are generally selling below the list price, except in the San Francisco Bay Area, where a lack of homes for sale is pushing sales prices higher than original asking prices.  The statewide measure suggests that homes sold at a median of 98.2 percent of the list price in February, up slightly from 97.9 percent at the same time last year. The Bay Area is the only region where homes are selling above original list prices due to constrained supply with a ratio of 101.6 percent in February, essentially unchanged from 101.5 percent a year ago.

• The average price per square foot** for an existing, single-family home was $222 in February 2016, down from $227 in January and up from $219 in February 2015. 

• San Francisco continued to have the highest price per square foot in February at $810/sq. ft., followed by San Mateo ($768/sq. ft.), and Santa Clara ($567/sq. ft.).  The three counties with the lowest price per square foot in February were Siskiyou ($109/sq. ft.), Madera ($116/sq. ft.), and Yuba ($117/sq. ft.).

• Mortgage rates dropped in February, with the 30-year, fixed-mortgage interest rate averaging 3.66 percent, down from 3.87 percent in January and 3.71 percent in February 2015, according to Freddie Mac.  Adjustable-mortgage interest rates also declined, averaging 2.83 percent in February, down from 2.98 percent in January and 2.97 percent in February 2015.

Graphics (click links to open):

• February sales at-a-glance infographic.
• Calif. existing home sales historical.
• Share of sales by price range.
• Sales to active listings ratio by region.
• Sales to list price ratio.
• Price per square foot.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only.  County sales data are not adjusted to account for seasonal factors that can influence home sales.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold.  The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions.  The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage.  A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.
   
**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property.  It is calculated as the sale price of the home divided by the number of finished square feet.  C.A.R. currently tracks price-per-square foot statistics for 38 counties. 

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
# # #

February 2016 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

February-16	Median Sold Price of Existing Single-Family Homes							Sales
State/Region/County	Feb-16	Jan-16		Feb-15		MTM% Chg	YTY% Chg	MTM% Chg	YTY% Chg
CA SFH (SAAR)	$446,460	$468,330		$429,930	r	-4.7%	3.8%	2.6%	6.4%
CA Condo/Townhomes	$388,000	$380,710		$367,480	r	1.9%	5.6%	7.1%	3.9%
Los Angeles Metropolitan Area	$428,090	$432,080		$409,810		-0.9%	4.5%	-3.6%	2.2%
Inland Empire	$290,270	$291,920		$282,400		-0.6%	2.8%	-0.9%	6.6%
S.F. Bay Area	$696,430	$703,150		$669,800	r	-1.0%	4.0%	-2.9%	-5.5%
S.F. Bay Area
Alameda	$712,990	$711,900		$651,950	r	0.2%	9.4%	-9.7%	-6.7%
Contra-Costa	$538,650	$499,550		$476,340	r	7.8%	13.1%	0.4%	-8.9%
Marin	$1,113,640	$955,360		$1,023,440		16.6%	8.8%	4.4%	-12.1%
Napa	$664,470	$610,000		$544,120		8.9%	22.1%	-29.5%	-21.4%
San Francisco	$1,437,500	$1,173,610		$1,154,760		22.5%	24.5%	-2.0%	-18.9%
San Mateo	$1,200,000	$1,077,500		$1,200,000		11.4%	0.0%	-7.4%	-6.1%
Santa Clara	$942,500	$895,000		$915,130		5.3%	3.0%	-7.8%	-10.6%
Solano	$365,620	$361,670		$337,500		1.1%	8.3%	21.7%	19.0%
Sonoma	$554,610	$593,750		$489,330		-6.6%	13.3%	-3.2%	4.7%
Southern California
Los Angeles	$445,030	$480,950		$419,260		-7.5%	6.1%	-5.5%	-0.3%
Orange	$712,560	$704,950		$680,290		1.1%	4.7%	-2.3%	1.5%
Riverside	$334,440	$333,370		$323,220		0.3%	3.5%	4.0%	7.5%
San Bernardino	$226,870	$234,460		$213,930		-3.2%	6.0%	-8.4%	5.1%
San Diego	$537,580	$542,150		$499,000		-0.8%	7.7%	6.3%	-4.7%
Ventura	$610,820	$638,590		$568,840		-4.3%	7.4%	-9.8%	-4.9%
Central Coast
Monterey	$497,980	$500,000		$500,000		-0.4%	-0.4%	13.6%	18.7%
San Luis Obispo	$527,080	$525,000		$491,670		0.4%	7.2%	-13.9%	-11.5%
Santa Barbara	$701,390	$712,960		$556,820		-1.6%	26.0%	-16.9%	-5.4%
Santa Cruz	$794,500	$694,500		$675,000		14.4%	17.7%	-2.1%	-14.5%
Central Valley
Fresno	$210,370	$213,510		$210,320		-1.5%	0.0%	5.6%	14.8%
Glenn	$200,000	$160,000		$220,000		25.0%	-9.1%	0.0%	28.6%
Kern (Bakersfield)	$221,500	$215,000		$217,500	r	3.0%	1.8%	2.2%	16.5%
Kings	$202,500	$194,280		$196,000		4.2%	3.3%	59.1%	52.2%
Madera	$215,380	$222,730		$217,500		-3.3%	-1.0%	0.0%	58.6%
Merced	$197,780	$192,000		$168,750		3.0%	17.2%	-12.2%	-13.3%
Placer	$418,130	$410,000		$375,380		2.0%	11.4%	0.6%	-3.6%
Sacramento	$297,980	$282,280		$283,960		5.6%	4.9%	12.5%	-1.6%
San Benito	$464,500	$480,000		$450,000		-3.2%	3.2%	-20.8%	-11.6%
San Joaquin	$292,960	$293,840		$270,750		-0.3%	8.2%	-11.1%	9.2%
Stanislaus	$253,350	$244,550		$237,680		3.6%	6.6%	6.8%	11.9%
Tulare	$189,200	$193,750		$172,140		-2.3%	9.9%	25.0%	7.9%
Other Counties in California
Amador	$267,860	$225,000		$271,430		19.0%	-1.3%	3.3%	3.3%
Butte	$270,830	$260,580		$247,320		3.9%	9.5%	9.2%	5.7%
Calaveras	$265,620	$255,560		$230,000	r	3.9%	15.5%	76.0%	57.1%
Del Norte	$180,000	$156,670		$200,000	r	14.9%	-10.0%	36.8%	116.7%
El Dorado	$424,320	$408,330		$384,880		3.9%	10.2%	2.8%	-1.6%
Humboldt	$269,440	$248,080		$250,000		8.6%	7.8%	23.9%	4.8%
Lake	$193,330	$236,760		$184,290		-18.3%	4.9%	9.8%	24.4%
Mariposa	$275,000	$287,500		$250,000		-4.3%	10.0%	-20.0%	50.0%
Mendocino	$371,430	$354,170		$309,090		4.9%	20.2%	24.1%	5.9%
Nevada	$298,150	$350,000		$320,000	r	-14.8%	-6.8%	35.5%	20.0%
Plumas	$266,670	$337,500		$180,000	r	-21.0%	48.2%	-36.8%	-40.0%
Shasta	$213,410	$229,310		$225,860		-6.9%	-5.5%	25.7%	33.3%
Siskiyou	$175,000	$197,500		$148,330		-11.4%	18.0%	25.8%	85.7%
Sutter	$232,890	$217,860		$213,330		6.9%	9.2%	-1.9%	-12.1%
Tehama	$175,000	$190,000		$150,000		-7.9%	16.7%	15.8%	15.8%
Tuolumne	$272,500	$211,670		$195,000		28.7%	39.7%	-31.6%	-15.2%
Yolo	$387,930	$360,420		$372,860		7.6%	4.0%	4.2%	0.0%
Yuba	$221,150	$207,350		$215,220		6.7%	2.8%	3.2%	16.1%

r = revised

February 2016 County Unsold Inventory and Time on Market
(Regional and condo sales data not seasonally adjusted)

February-16	Unsold Inventory Index					Median Time on Market
State/Region/County	Feb-16	Jan-16		Feb-15		Feb-16	Jan-16		Feb-15
CA SFH (SAAR)	4.6	4.3		4.9	r	41.6	44.5		44.1	r
CA Condo/Townhomes	3.9	3.8		4.2	r	32.5	40.7		39.4	r
Los Angeles Metro Area	5.4	4.8		5.8		55.8	57.3		58.7
Inland Empire	6.1	5.7		6.7		59.8	61.9		67.6
S.F. Bay Area	3.2	2.4		2.8	r	25.5	28.1		24.8	r
S.F. Bay Area
Alameda	3.0	2.0		2.9	r	20.3	22.5		20.5	r
Contra-Costa	3.0	2.5		1.5	r	23.6	24.3		24.3	r
Marin	3.8	2.8		3.9		58.2	45.5		39.4
Napa	6.5	4.1		5.6		65.8	65.1		87.9
San Francisco	3.3	2.3		2.5		22.4	33.9		20.7
San Mateo	2.7	1.9		2.8		19.7	22.1		19.1
Santa Clara	2.9	1.9		2.6		21.1	23.6		21.3
Solano	2.8	3.4		4.2		47.6	50.0		47.8
Sonoma	3.9	3.2		4.1		59.8	65.6		52.1
Southern California
Los Angeles	4.9	4.3		5.2		49.5	51.2		51.1
Orange	4.9	4.1		5.1		59.0	64.2		65.1
Riverside	6.4	6.3		7.0		65.0	64.5		72.3
San Bernardino	5.5	4.8		6.2		54.0	57.0		58.1
San Diego	4.5	4.3		4.6		26.3	27.0		28.6
Ventura	5.9	4.8		5.8		66.8	72.2		66.5
Central Coast
Monterey	4.3	4.7		5.3		38.0	51.5		34.2
San Luis Obispo	6.5	5.1		5.6		41.1	43.4		39.9
Santa Barbara	6.6	4.9		5.8		49.4	51.4		46.6
Santa Cruz	3.7	2.8		3.5		37.2	38.6		28.5
Central Valley
Fresno	5.1	5.1		5.7		33.2	32.0		34.5
Glenn	3.1	3.1		4.0		61.0	24.7		70.7
Kern (Bakersfield)	4.9	4.8	r	4.7		45.0	41.0		41.0	r
Kings	4.0	6.1		6.8		42.6	31.0		51.3
Madera	8.0	7.8		12.9		95.1	78.4		94.6
Merced	5.8	4.7		4.9		67.8	55.5		58.7
Placer	3.8	3.5		4.5		27.8	27.5		39.5
Sacramento	2.9	3.0		3.4		24.1	26.6		27.8
San Benito	3.4	2.4		2.9		43.9	35.5		41.0
San Joaquin	3.5	3.1		4.4		28.7	28.9		35.5
Stanislaus	3.6	3.7		4.5		28.5	31.5		29.8
Tulare	5.5	6.4		5.4		37.6	43.3		49.5
Other Counties in California
Amador	6.4	6.3		6.4		51.3	91.0		110.3
Butte	3.9	3.9		4.4		50.7	55.7		55.2
Calaveras	4.8	8.1		9.1	r	85.9	86.8		91.0	r
Del Norte	4.6	6.7		12.2		96.8	122.5		121.0	r
El Dorado	5.2	4.7		5.5		57.5	53.8		62.7
Humboldt	4.0	4.9		5.9		61.0	41.2		77.1
Lake	6.6	6.8		8.2		73.4	82.3		109.6
Mariposa	7.8	6.1		13.5		125.1	98.3		135.5
Mendocino	8.7	10.2		8.9		75.5	112.8		100.7
Nevada	4.7	6.0		7.3		61.0	61.0		49.5	r
Plumas	17.0	10.0		14.1	r	135.5	132.8		127.7	r
Shasta	6.3	7.7		7.9		47.0	51.9		64.2
Siskiyou	5.5	7.3		15.2		61.0	78.4		56.4
Sutter	4.1	4.1		4.3		28.4	27.9		49.5
Tehama	9.0	9.0		10.0		61.0	82.8		45.5
Tuolumne	8.2	5.1		6.7		75.5	98.3		57.1
Yolo	3.3	3.0		3.4		24.5	31.5		29.1
Yuba	3.0	3.2		3.7		39.5	29.5		29.0

r = revised

8 Bad ‘Home Improvement’ Habits

Home owners can overdo it when it comes to the upkeep of their home. This Old House recently spotlighted several ways that home owners’ enthusiasm for home ownership may actually harm the house.

1. Having light bulbs that are too bright. You want a well-lit home, but exceeding a lamp or light fixture’s recommended wattage can be dangerous, particularly with incandescents or halogen lights, says John Drengenberg, consumer safety director for Underwriters Laboratories. "Using a bulb with too-high wattage will cause the fixture and its wiring to overheat," he notes, which could then allow the heat to travel to the wall or erode the insulation on the wires and lead to a house fire. Check the fixtures label to make sure you use the correct wattage.

Read more: 2015 Remodeling Impact: Cost, Return, & Joy

2. Planting trees near driveways or walkways. A line of trees to the house may up its curb appeal but adding young trees near driveways or walkways could be putting your slab at risk. As these trees grow taller, their roots will go outward, potentially pushing up the paving and causing it to buckle or crack. This Old House recommends planting small trees that will remain under 20 feet at maturity and that are at least 10 feet from paved areas. For larger trees, leave at least a 20-foot radius.

3. Overscrubbing a sink. Don’t overdo it with abrasive cleaners; they can scratch the sink. "Cleaners with a grit or grain to them will wear away at the finish and dull it," Kohler's Mike Marbuch told This Old House. "That will make the sink more prone to gunk sticking to it—actually making it look dirtier." Try a liquid cleanser like vinegar or lemon juice on the sink and avoid scrubbing it every day.

4. Overdoing it with can lights. Excessive recessed lighting in a home can cause a lot of air leaks. Recessed lighting is known as causing heat-sucking air leaks, especially when the fixtures are unsealed in vaulted ceilings. Airtight recessed lighting fixtures are available that are rated for insulation contact (IC). Also, use as few recessed lights as you can, especially when it comes to adding them to cathedral ceilings or in rooms directly below unconditioned attics.

5. Spreading too much mulch outside. “Over-mulching will suffocate plants, confuse their root systems, and prevent water from percolating into the soil,” notes the article at This Old House. “If you’ve mulched so much that tree trunks and flowers’ and shrubs’ lower branches are covered by or dragging in it, you’ve gone overboard.” Have mulch no thicker than 3 inches.

6. Using glass cleaner on mirrors. Watch out for store-bought sprays that promise to make your glass sparkle. “A drop of liquid running around the mirror’s edge can cause the reflective backing to lift or craze,” This Old House notes. The black edge can occur from using ammonia- or vinegar-based cleaners. This Old House recommends using warm water and a soft, lint-free cloth to clean mirrors. Or if you do use the sprays, spray it onto a dry cloth first and not directly onto the glass.

7. Repainting too much. “Excessive paint is detrimental – especially on an older house, which may have layers of thicker oil-based paint, which becomes brittle with age,” notes This Old House. To avoid thick, cracked, or peeling paint, be sure to carefully power-wash prior to painting, sand areas that need it, and then use 100 percent acrylic-resin exterior paint.

8. Fertilizing too much. Fertilizing too often can spur more weeds to grow. Also, the Environmental Protection Agency warns over-fertilizing can cause “nutrient pollution,” which is when nitrogen and phosphorus runoff from lawn fertilizers and then leads to an overgrowth of algae that can even pollute local waterways. Some lawn experts recommend only fertilizing twice a year, late summer and fall only.

View all 19 tips at This Old House.

Source: “19 Ways You’re Killing Your Home With Kindness,” This Old House (February 2016)

Kitchen Remodeling Projects That Pay Off

DAILY REAL ESTATE NEWS | FRIDAY, MARCH 04, 2016

Kitchen redos can be pricey. That means home owners on a budget must be choosy when trying to decide what kitchen projects to spend money on and what improvements can wait.

Realtor.com® recently launched a new series “Renovations That Really Pay Off," and their first article focuses on kitchen projects that have the best return on investment and won't be too much of a financial burden for your clients.

Have a Kitchen Nightmare?

9 Modest Fixes for the Problem Kitchen

A Dozen Ways to Make Kitchens Sizzle

The New Kitchen Finish: Black Stainless

Here are a few of the kitchen projects highlighted:

“Amped Up” Appliances

New appliances like a refrigerator, stainless-steel dishwasher, and stove can have a strong pull with home buyers, says real estate pro Al Cannistra. For example, Cannistra says he had a listing that lingered on the market with outdated appliances but as soon as the owners updated the appliances, the home received two offers in the first week and the home ended up selling above asking price. Just be sure to “keep the appliances and plumbing where they are because the rule of thumb is to add $5,000 each time you relocate either,” suggests Justin Riordan, founder of Spade and Archer Design Agency

Spruce up the cabinets

New cabinets can range from $3,900 and $12,000. That’s why home owners may be better off trying to give a face-lift to what they already have, such as replacing the cabinet hardware or painting the cabinets. “If you have existing wood cabinets that are still in decent shape, instead of completely refacing them, give them a fresh coat of paint,” says Tracy Kay Griffin, designer for HGTV’s “Get It Sold.” For example, Rust-Oleum offers a Cabinet Transformation kit.

Add a charging station

Everyone is looking for a plug to charge for their smartphones, tablets, and electronics. Nearly two-thirds of remodelers say they’ve added a charging station in the kitchen for the gadgets, according to the National Kitchen and Bath Association’s annual trend report. Cabinets and drawers can be modified to add hidden power strips, for example.

New countertops

A new countertop can have a big impact on the look of the kitchen. And don’t assume granite. NKBA says quartz countertops are gaining popularity. A new countertop “provides an opportunity to install a new glass or subway backsplash for additional punch,” says designer Erin Davis, co-owner of Mosaik Design & Remodeling in Portland, Ore. “A budget-friendly option is to install a 4-inch-high splash out of the same countertop material.”

Wood floors

NKBA’s latest report shows that wood floors are the most popular kitchen flooring. Plus, averaging $9 to $12 a square foot, wood flooring tends to be cheaper than tile too.

View more details about top kitchen renovations at realtor.com®.

Source: “6 Kitchen Renovations That Really Pay Off,” realtor.com® (March 2, 2016)