“The spring home-buying season continues to be strong, especially in areas where insufficient housing supply is less of an issue,” says C.A.R. president Chris Kutzkey. “With mortgage interest rates edging up recently and an imminent increase in rates by the Federal Reserve, housing affordability concerns will be heightened but may also prompt prospective buyers to feel a sense of urgency to enter the market.”

The median price of an existing, single-family detached California home edged up in May from both the previous month and year for the fourth consecutive month. The median home price was up 0.8 percent from $481,880 in April to $485,830 in May, the highest level since November 2007. May's median price was 4.4% higher than the revised $465,470 recorded in May 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“A healthy growth rate in home prices is an essential ingredient to a sustainable housing market recovery,” says C.A.R. VP and chief economist Leslie Appleton-Young. "With the statewide median price increasing at a pace more in line with the historical norms since late 2014, regional markets across the state are finally showing sales improvements this year."

On the condo front, in Los Angeles, for example, new condominium prices fell by 1% in May from the previous month, marking the third monthly decline following five consecutive month-over-month increases, according to the Condominium Pricing Index recently released by the Mark Co. New construction inventory is unchanged from last month, but is approximately 1,622% higher than one year ago, the company says.

Since the sale of the last unit at Evo, a 2007 development, there are now approximately 155 new condominiums available in Downtown Los Angeles, all within the first phase of Metropolis, a new construction development in the South Park neighborhood.

“Resale inventory remains very low, with 85 active resale condominium listings currently available in Downtown Los Angeles, representing 2.1 months of inventory, as compared to six months of available product that marks the balance between a buyer's and a seller's market,” notes Erin Kennelly, senior director of research, the Mark Co. “Downtown Los Angeles continues to attract an influx of residents seeking proximity to cultural amenities and an upscale urban lifestyle.”

Last month, as GlobeSt.com reported, the Mark Co. reported that condo prices in the prior two months had decreased by a total of 6%, but is was still 15% higher year-over-year. At the time, Kennelly told GlobeSt.com that “The pace of presales at Metropolis indicates that demand for condominiums in Downtown Los Angeles is still very strong; however, buyers choosing to purchase during presales at Metropolis represents buyers removed from the Downtown condominium market. This is likely responsible for some short-term weakness in prices.”