Written by The Business Journal Staff
Existing home sales in California saw a sharp drop in May attributed to the coronavirus crisis, and the Central Valley was no different, according to the latest figures from the California Association of Realtors.
Sales of existing family homes were down 31.5% in May compared to May 2019 in Fresno County. Sales were also down 5.1% between April and May.
Despite the dip in sales, home prices actually appreciated 1.7% month-over-month and 3.5% year-over-year. The median sold price was $295,000 in Fresno in May, compared to $290,000 in April and $284,900 in May 2019.
Local Realtors attribute stable or even increasing home prices to the lack of housing inventory currently on the market during the Covid-19 crisis. The Central Valley region saw its housing supply fall by more than 33%, according to the California Association of Realtors.
Kings County sales were down 22.1% on an annual basis, but up 1.1% month-to-month. Kings County home prices were down 3.9% between April and May and also down 4.2% year-to-year.
The median sold price for May in Kings County was $249,950, compared to $260,900 in April and $260,000 a year ago.
Madera County saw a 31.3% drop in existing home sales in May compared to a year ago, though month-over-month sales saw a 1.5% increase.
The median sold price was up 10.2% year-over-year in Madera, but down 2.9% from April. The median sold price was $297,500 last month, compared to $306,500 from April and $270,000 in May 2019.
Tulare County’s existing home sales dipped by 23.9% last month compared to a year ago, but remained unchanged month-over-month. Home prices did appreciate 2.9% from a year ago and 1% month-to-month.
Tulare County’s median sold price was $255,250 last month, compared to $252,750 in April and $248,000 in May 2019.
For the entire state, May’s sales total was down 13.9% from April and down a further 41.4% from a year ago.
The year-to-year drop was the largest since November 2007, contributing to a year-to-date sales drop of 12.9%.
“The sharp sales drop in May was the steepest we’ve seen in some time, but there are encouraging signs that show the market is recovering and should continue to improve over the next few months,” said 2020 C.A.R. President Jeanne Radsick, a second-generation Realtor from Bakersfield. “With pending home sales up a stunning 67 percent in May, buyer demand is on the upswing amid record-low rates that are making monthly mortgage payments $300 less than a year ago.”