California housing market officially now ‘weak.’ Is it an early warning of recession?
The once red-hot California housing sales market is officially now “weak,” state analysts say, but the year-long flattening does not necessarily suggest the state is headed toward an economic downturn.
In a brief report issued Monday, the state Legislative Analyst’s Office weighed in on the latest California home sales trends, noting that homes sales statewide in June were down from the same month last year, and notably lower than historic norms.
“Home sales were on a clear downward trend during the second half of 2018 and the beginning of 2019,” analysts wrote. “Sales seem to have stabilized in recent months and are no longer declining from month to month.
“Nonetheless, sales remain relatively weak, but not as weak as is typically seen before economic downturns.”
The state analysis, based on data from Zillow, the California Association of Realtors and Moody’s Analytics, estimated 25,900 non-distressed home sales statewide in May. That is below the 28,000 sales number from June of 2018, and below the “long-term historical average of 31,400 sales per month.”
Similarly, sales numbers are low in recent months in Sacramento, and sales prices have flattened as well.
This story was originally published July 22, 2019 at 5:08 PM.