Looking for a severe real estate bust? Try Australia or California. Both represent ground zero.

The California Association or Realtors (CAR) just posted some Dismal Statistics.

  • The California housing market posted its largest year-over-year sales decline since March 2014 and remained below the 400,000-level sales benchmark for the second consecutive month in September, indicating that the market is slowing as many potential buyers put their homeownership plans on hold.
  • Existing, single-family home sales totaled 382,550 in September on a seasonally adjusted annualized rate, down 4.3 percent from August and down 12.4 percent from September 2017.
  • September's statewide median home price was $578,850, down 2.9 percent from August but up 4.2 percent from September 2017.
  • Statewide active listings rose for the sixth consecutive month, increasing 20.4 percent from the previous year.
  • Inventory reached the highest level in 31 months, with the Unsold Inventory Index reaching 4.2 months in September.
  • September year-to-date sales were down 3.3 percent.
  • Tax reform, which increases the cost of homeownership, also is contributing to the decline, especially in high-cost areas such as the San Francisco Bay Area and Orange County.

Inventory Rising Fast

That image thanks to Calculated Risk.

Inventory up 20%. What's the problem?

The same problem as down under: Supply of Homes on Australia Market Soars Rapidly, Major Crash Coming

Goodbye California, Hello Boise

Sky-high housing prices in the Golden State bring an echo boom—and new neighbors—to other Western states.

Bloomberg notes Boise and Reno Capitalize on the California Real Estate Exodus

Affordable Migration

Also, please consider my article Affordable Migration: Goodbye Chicago, New York, LA - Hello 5 Cities in Texas

Even liberals have finally had enough of California, Illinois, and New York.

Related Housing Articles

  • Thud! Sept New Home Sales Plunge 5.5% from Dramatically Revised Lower August
  • Housing Continues to Weaken: Starts Decline 5.3%, Permits Down 0.6%

This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.

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