California home sales jump nearly 11% in June

California home sales jump nearly 11% in June

Home sales in California jumped nearly 11 per cent month-over-month in June even as property prices reached seven-year highs, thanks to stronger economy and low interest rates.

According to stats released by research firm CoreLogic Inc., home sales jumped for the fourth consecutive month to around 46,095 units regardless of unusually tight supplies. The figure represents a jump of 10.8 per cent in sales from 41,612 units in May this year and 16.8 per cent from 39,460 units in June 2014.

Suburban areas reported particularly stronger sales. Sales of news and existing homes climbed 27 per cent and 30 per cent from a year ago in Contra Costa and Solano counties, respectively.

Even higher prices failed to discourage buyers. New and old houses' median sales price soared to $417,000, up 3 per cent and 6.9 per cent from $405,000 in May and $390,000 in June last year, respectively. June 2015's median sales price was the highest price posted since October 2007.

Analysts attributed the increase in home sales to the combination of low interest rates and better economy.

Stuart Gabriel, the director of UC Los Angeles' Ziman Center for Real Estate, said, "The economy is clearly in a much better place than it was a year ago. The (economic) fundamentals clearly support what we're seeing in the housing market."

Gabriel added that buyers might also be trying to buy a property ahead of a widely anticipated hike in interest rates by the U.S. Federal Reserve.