Home sales can be a good indicator of the health of the state’s economy and housing markets. Home sales have been relatively weak in recent months. This remained true in July, despite a modest uptick in sales relative to June. In July, there were an estimated 26,600 non-distressed (not resulting from mortgage delinquency or foreclosure) home sales statewide. This is below the 28,300 sales in July 2018 and the long-term historical average of 31,500 sales per month. (This data is “seasonally-adjusted” because some months are predictably higher or lower than others.)
Home sales were on a clear downward trend during the second half of 2018 and the beginning of 2019. Sales seem to have stabilized in recent months and are no longer declining from month to month. Nonetheless, sales remain at relatively weak, but not as weak as is typically seen before economic downturns.
Date sources: Zillow, California Association of Realtors, and Moody’s Analytics, with LAO calculations.