California Realtors on Tuesday blamed rising prices for a decline in both home sales and prices in July.
Statewide sales of single-family homes were down 4.1 percent from June, while the median price of $510,000 was down 1.8 percent, the California Association of Realtors reported.
In San Diego County, the median price was unchanged between June and July at $560,000, but sales fell 8.4 percent.
“While fundamentals such as increasing household formation and strong job creation continue to fuel housing demand and support price growth, low housing affordability and reduced buying power of home buyers has put a cap on how fast the statewide median price can grow,” said Leslie Appleton-Young, vice president and chief economist for the association.
The association’s Unsold Inventory Index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, inched up to 3.6 months in July from 3.2 months in June.
Realtors President Pat “Ziggy” Zicarelli said strong demand has been the norm in California, but warned that “supply remains tight, and low affordability is expected to be an issue in the short term.”