California housing prices increased by more than 30 percent in June, with inventory rising slightly in what is considered an encouraging sign for the market, a trade association said Tuesday.
Rising home prices may encourage more owners to put their properties up for sale in the coming months, but June’s inventory level is still well below the six- or seven-month supply considered normal.
The tight inventory and increased buyer competition has driven down the time properties stay on the market compared with a year ago. In June, homes sold in a median of 27.7 days, up slightly from 27.1 days in May but down from 43.5 days in June 2012.
Along with home prices, interest rates may be on the rise. Interest rates are now putting some pressure on the market. The rate on a 30-year mortgage was in the 3.5 percent range until the middle of last month, then spiked above 4 percent shortly after Federal Reserve Chairman Ben S. Bernanke said the agency may reduce its economic stimulus and possibly stop it entirely next year. He then backed off, saying last week the economy needs the Fed’s help for the “foreseeable future,” and rates dropped a bit.
For the full article Click Here to be linked to Press Telegram of Long Beach.