Home sales in the central San Joaquin Valley, and across the state, fell in November as new mortgage loan disclosure rules delayed closings, according to the California Association of Realtors.
In Fresno, home sales fell nearly 22 percent last month compared to October, but still remained higher than a year ago. The median-home sales price inched up to $222,970 from $214,620.
Sales in Kings and Tulare counties fell 21.7 percent and 29.1 percent, respectively. Madera remained the bright spot with home sales up 3.4 percent.
The Consumer Financial Protection Bureau in October rolled out two new forms, a requirement under the Dodd-Frank Act, called the Know Before You Owe TILA-RESPA Integrated Disclosure, or TRID. The forms replaced the current Good Faith Estimate and Truth in Lending disclosures.
“Some sales may have been either pulled forward into September to beat TRID’s effective date or been delayed,” said Ziggy Zicarelli, the association president. “The impact, however, should be transitory as the roll-out and implementation process move further along.”
Will the rise in interest rates affect the housing market?
The Federal Reserve announced a 0.25 percent rate hike last week, but it “shouldn’t have a significant adverse impact on the housing market since rates are still historically low,” said Leslie Appleton-Young, vice president and chief economist.
“It may spur potential homebuyers who have been waiting on the sidelines to finally jump in now that they see the rates may continue to rise slowly in the next couple of years.”