Home sales can be a good indicator of the health of the state’s economy and housing markets. Home sales slowed somewhat in August. There were 33,300 non-distressed (not resulting from mortgage delinquency or foreclosure) home sales statewide. This is down slightly from 34,400 in July and 34,600 August of 2017. (We apply a “seasonal adjustment” to the claims data because some months are predictably higher or lower than others.)
During the past year, the year-over-year growth rate in home sales has slowed. Sales growth generally has hovered around zero and has posted declines in some months. While somewhat notable, this mild slowdown is far from the type of drop that is normally seen before an economic downturn.
Date sources: Zillow, California Association of Realtors, and Moody’s Analytics, with LAO calculations.