– Existing, single-family home sales totaled 269,180 in July on a seasonally adjusted annualized rate, down 3.0 percent from June and down 9.0 percent from July 2022. 

– July’s statewide median home price was $832,340, down 0.7 percent from June and up 0.2 percent from July 2022.

– Year-to-date statewide home sales were down 30.3 percent in July.

Los Angeles, CA – Aug. 17, 2023 (PRNewswire) California home prices continued to stabilize in July as the statewide median price improved on an annual basis for the first time since October 2022, despite interest rates remaining on the rise, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 269,180 in July, according to information collected by C.A.R. from more than 90 local REALTOR^® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2023 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

July’s sales pace was down 3.0 percent on a monthly basis from 277,490 in June and down 9.0 percent from a year ago, when a revised 295,770 homes were sold on an annualized basis. Sales of existing single-family homes in California remained below the 300,000-unit pace for the tenth consecutive month. The yearly drop was the smallest since April 2022 and marked the first time in more than a year that sales dropped by less than 10 percent from a year ago. However, the small decline was due partly to a lower sales base last July, when sales dropped below 300,000 for the first time in over two years.

“Despite slowing home sales in the past couple of months, housing demand remains resilient, and the market continues to be competitive,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “Many in the market aspire to become homeowners and are actively looking to buy, but the shortage of homes for sale and elevated mortgage rates remain challenging headwinds for them.”

California’s median home price exceeded $800,000 in July for the fourth straight month and had its first year-over-year gain in nine months. The statewide median price dipped 0.7 percent from June’s $838,260 to $832,340 in July and was up 0.2 percent from a revised $830,870 a year ago. A resilient economy with solid job growth, coupled with a shortage of homes on the market are contributing factors to strong home prices. As the housing market transitions into the off-peak homebuying season in the coming months, the statewide median price will likely soften as market competition cools. Home prices, nevertheless, should continue to improve from last year as tight housing supply conditions persist.

“Housing supply continued to be tight in California as rates remain well above levels observed in 2020-2021, when homeowners locked in their long-term mortgages,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While home sales have been negatively impacted by the shortage of homes for sale during this year’s homebuying season, home prices continue to stabilize and have provided consumers with some confidence that market conditions are still solid. Interest rates should moderate later this year if inflation eases further, and home sales could see some improvement in the winter season.”

Other key points from C.A.R.’s July 2023 resale housing report include:

• Sales declines continued to moderate at the regional level, with four of the five major regions recording sales decreases of less than 15 percent from a year ago. The Far North region posted the biggest sales dip at -16.7 percent from a year ago, followed by the Central Valley (-14.4 percent), the San Francisco Bay Area (-14.2 percent) and Southern California (-14.0 percent). The Central Coast (-5.8 percent) was the only region that registered a decline of less than 10 percent, as two of the four counties in the region posted an annual sales increase.
  
• Forty-two of 51 counties tracked by C.A.R. registered year-over-year sales declines in July, with 30 counties experiencing annual sales drops of more than 10 percent and sales in nine counties falling more than 20 percent from last July. Lassen (-68.4 percent) posted the biggest sales dip, followed by Del Norte (-37.5 percent) and Sutter (-34.4 percent). Eight counties registered sales increases from last year, with Mendocino (39.5 percent) gaining the most, followed by Glenn (38.5 percent) and Tehama (20.7 percent).
  
• At the regional level, home prices registered gains from a year ago in three of the five major regions and declined in two. The Central Coast (3.7 percent) continued to record an improvement in its median price and was the region with the biggest year-over-year gain in July. Three of the four counties within the region posted an annual gain, with San Luis Obispo being the only exception, declining 4.0 percent from the prior year. Southern California (2.7 percent) and the Central Valley (0.8 percent) also experienced an increase in their median prices from last year but at a more modest pace than the Central Coast region.
  
• At the other end of the spectrum, the Far North (-7.1 percent) posted a significant drop in its median price in July, with five of the six counties in the region experiencing price declines from a year ago. With interest rates remaining on the rise and housing affordability continuing to be a bigger issue for lower-price segments of the market, a downward price adjustment in the region in July was not a surprise. The San Francisco Bay Area (-0.3 percent) was the other region that experienced a median price decline, but the drop was flat compared to the Far North region.
  
• Home prices across the state stabilized somewhat in July, as fewer counties (27) registered year-over-year median price declines in July, compared with 37 counties in June. Mariposa experienced the biggest price decline with a drop of -23.6 percent from last July, followed by Plumas (-21.3 percent) and Mendocino (-19.0 percent). Twenty-one counties posted an increase in their median price from last year, a surge from 14 recorded in June 2023. Amador registered the biggest jump of 12.6 percent in price, followed by Santa Barbara (10.2 percent) and Kings (10.0 percent).
  
• Housing inventory in California climbed month-over-month in July for the second straight month after inching up in June but continued to trail last year’s level as a lack of new listings remained the norm. Last month’s statewide unsold inventory index (UII) increased 13.4 percent from the prior month but dropped sharply by 19.4 percent on a year-over-year basis. Active listings at the state level continued to fall more than 30 percent from a year ago and recorded the largest annual decline since May 2021. With mortgage rates expected to remain high in August and September, a “lock-in effect” may prevent any meaningful improvement in supply conditions for the rest of the third quarter.
  
• Nearly 80 percent of all counties experienced a dip in active listing from last year, and 38 of them dropped by double-digits on a year-over-year basis. Mono (-64.2 percent) posted the biggest year-over-year drop in July, followed by Alameda (-59.4 percent) and Contra Costa (-56.6 percent). Eleven counties recorded a year-over-year gain last month, with Mariposa registering the largest yearly gain of 42.4 percent, followed by Siskiyou (16.9 percent) and Del Norte (15.7 percent). On a month-to-month basis, 19 counties followed the statewide trend and may have begun the seasonal decline. Thirty-one counties, however, remained on an upward trend and continued to register monthly increases in July.
  
• The unsold inventory index (UII) in all price ranges declined by double-digits from a year ago in July, with the mid-price segment of $750,000-$999,000 dipping the most by -25.8 percent year-over-year. The $500,000-$749,000 price range (-20.0 percent) posted the second largest decline from last year, followed by the sub-$500,000 (-18.8 percent) and the $1 million price segment (-16.1 percent). All price ranges experienced a monthly increase in their UII from June, primarily due to weaker sales in July.
  
• The median number of days it took to sell a California single-family home was 16 days in July and 18 days in July 2022.
  
• C.A.R.’s statewide sales-price-to-list-price ratio* was 100 percent in July 2023 and 100.0 percent in July 2022.
  
• The statewide average price per square foot** for an existing single-family home was $409, down from $411 in July a year ago.
  
• The 30-year, fixed-mortgage interest rate averaged 6.84 percent in July, up from 5.41 percent in July 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS^® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles. 

SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

• Sixteen percent of California households could afford to purchase the $830,620 median-priced home in the second quarter of 2023, down from 19 percent in first-quarter 2023 and down from 17 percent in second-quarter 2022.
  
• A minimum annual income of $208,000 was needed to make monthly payments of $5,200, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 6.61 percent interest rate.
  
• Twenty-five percent of home buyers were able to purchase the $640,000 median-priced condo or townhome. A minimum annual income of $160,400 was required to make a monthly payment of $4,010.

Los Angeles, CA – Aug. 11, 2023 (PRNewswire) Housing affordability in California slid to the lowest level in nearly 16 years as interest rates stayed above 6 percent for the third straight quarter and home prices remained elevated by a shortage of homes on the market, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today.

Fewer than one in five (16 percent) home buyers could afford to purchase a median-priced, existing single-family home in California in second-quarter 2023, down from 19 percent in the first quarter of 2023 and down from 17 percent in the second quarter of 2022, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The second-quarter 2023 figure is less than a third of the affordability index peak high of 56 percent in the first quarter of 2012.

C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

A minimum annual income of $208,000 was needed to qualify for the purchase of a $830,620 statewide median-priced, existing single-family home in the second quarter of 2023. The monthly payment, including taxes and insurance (PITI) on a 30-year, fixed-rate loan, would be $5,200, assuming a 20 percent down payment and an effective composite interest rate of 6.61 percent.

The effective composite interest rate was 6.48 percent in first-quarter 2023 and 5.39 percent in second-quarter 2022. With interest rates near a 17-year high and expected to remain elevated for the rest of the year, housing affordability will remain a challenge for many home buyers in the coming months.

The median price of condominiums and townhomes in California declined from a year ago but was up from the previous quarter. As a result, the share of households that could afford a typical condo/townhome in second-quarter 2023 dipped from the 26 percent recorded in the previous quarter but was unchanged from the 25 percent recorded in the second quarter of 2022. An annual income of $160,400 was required to make the monthly payment of $4,010 on the $640,000 median-priced condo/townhome in the second quarter of 2023.

Compared with California, more than a third of the nation’s households could afford to purchase a $402,600 median-priced home, which required a minimum annual income of $100,800 to make monthly payments of $2,520. Nationwide affordability was down from 38 percent a year ago.

Key points from the second-quarter 2023 Housing Affordability report include:

• When compared to the previous quarter, housing affordability declined in 47 counties and remained unchanged in four. Unfortunately, not one single county recorded a quarter-to-quarter improvement in affordability. That said, affordability improved from a year ago in 15 counties, while affordability in eight others remained unchanged. However, on a year-over-year basis, affordability declined in the majority of counties (28).
  
• Lassen (52 percent) remained the most affordable county in the state and was the only county to record an affordability index of more than 50 percent in the second quarter of 2023. Siskiyou (39 percent), Plumas (38 percent) and Shasta & Tehama (both at 35 percent) followed closely. Together, they were the only five counties to record an affordability index of at least 35 percent, with all five being located in the Far North region. Lassen required the lowest minimum qualifying income ($62,400) of all counties in California to purchase a median-priced home and was the only county in the state with a qualifying income less than $65,000.
  
• The least affordable counties in California were Mono (5 percent), Santa Barbara (10 percent), San Luis Obispo (11 percent) and Monterey, along with Orange County (both at 12 percent). Each of those counties required a minimum income of at least $216,800 to purchase a median-priced home in that county. San Mateo continued to require the highest minimum qualifying income ($504,400) to buy a median-priced home in second-quarter 2023 and was the only county with a minimum qualifying income over $500,000. Santa Clara County required the second highest minimum income of $451,200, followed by Marin ($443,600) and San Francisco ($403,600).
  
• Housing affordability declined the most on a year-over-year basis in Kings County, falling seven points in second-quarter 2023. Lake recorded the second biggest drop in affordability, sliding five points below the like quarter of last year, followed closely by Amador and Glenn, with each dropping four points from a year ago. Despite higher household incomes and somewhat lower home prices, elevated mortgage rates continued to be the primary factor keeping the cost of borrowing near all-time highs and affordability in a persistent crunch in most of these counties.

See C.A.R.’s historical housing affordability data.
See first-time buyer housing affordability data.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

CALIFORNIA ASSOCIATION OF REALTORS®
Traditional Housing Affordability Index
Second quarter 2023

Traditional Housing Affordability Indices (HAI) were calculated based on the following effective composite interest rates: 6.61% (2Qtr. 2023), 6.48% (1Qtr. 2023) and 5.39% (1Qtr. 2022).

SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

The statewide median price remains above $800,000 for the third straight month, and the year-over-year price decline is the smallest since January 2023.

• Existing, single-family home sales totaled 277,490 in June on a seasonally adjusted annualized rate, down 4.1 percent from May and down 19.7 percent from June 2022.
• June’s statewide median home price was $838,260, up 0.3 percent from May and down 2.4 percent from June 2022.
• Year-to-date statewide home sales were down 32.9 percent in June.

Los Angeles, CA – July 19, 2023 (PRNewswire) Elevated interest rates and a shortage of homes for sale continued to dictate the market in June, as California home sales remained below the 300,000 annualized pace for the ninth consecutive month, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 277,490 in June, according to information collected by C.A.R. from more than 90 local REALTOR^® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2023 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

June’s sales pace was down 4.1 percent on a monthly basis from 289,460 in May and down 19.7 percent from a year ago, when a revised 345,760 homes were sold on an annualized basis. Sales of existing single-family homes in California remained below the 300,000-unit pace for the ninth consecutive month. The yearly drop was the smallest since May 2022 and marked the first time in a year that sales dropped by less than 20 percent from a year ago. However, the smaller decline was due primarily to weaker sales last June, when sales dropped below 350,000 for the first time in two years.

Infographic: https://www.car.org/Global/Infographics/2023-06-Sales-and-Price

“California’s housing market has improved since the winter and appears to have found its footing as sales declined at the slowest pace in over a year,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR^®. “Despite elevated interest rates, the demand for housing continues to outpace the availability of homes for sale, as buyers slowly adapt to the new normal under the current housing market conditions.”

California’s median home price exceeded $800,000 in June for the third straight month, edging up 0.3 percent from May’s $836,110 to $838,260 in June. The statewide median price continued to rise and reached the highest level in ten months. Tight housing supply and more high-end homes being sold relative to prior months continued to put upward pressure on prices. Despite the improvement from early 2023, the median home price in California dipped 2.4% on a year-over-year basis for the eighth consecutive month from $858,800 in June 2022. The downward movement in home prices appears to be stabilizing, but more dips in the median price are expected in the coming months as rates will likely remain elevated for most, if not the entire third quarter, of 2023.

“Buyer demand appears to have stabilized after rates doubled last year, though rates could still move higher in the coming months,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “As inflation finally subsides later this year, the market could see some improvement as rates and supply conditions start turning around.”

Other key points from C.A.R.’s June 2023 resale housing report include:

• Sales declines continued to moderate at the regional level, with three of the five major regions dropping less than 20 percent from a year ago. The Far North region had the biggest dip in sales at -26.1 percent, followed by the Central Valley (22.9 percent). Sales in Southern California (-19.4 percent), the San Francisco Bay Area (-19.2 percent) and the Central Coast (-18.6 percent) declined less than 20 percent year-over-year.
• All but seven of the 51 counties tracked by C.A.R. recorded annual sales declines, with 24 counties dropping more than 20 percent year-over-year and nine counties falling more than 30 percent from the same month last year. Mendocino (-38.6 percent) and Napa (-38.6 percent) registered the biggest sales dip in June, followed by Siskiyou (-37.5 percent), Mono (-35.7 percent) and Calaveras (-34.3 percent). Seven counties posted a year-over-year sales gain, with Glenn (72.7 percent) leading the pack, followed by San Benito (18.4 percent) and Mariposa (13.3 percent).
• All but one major region experienced a dip in median price from a year ago, but all declines were 4 percent or less. The Central Valley (-4.0 percent) registered the biggest drop of all regions, with seven of its 12 counties experiencing price decline from a year ago. The Far North (-2.8 percent) posted the second largest drop in median price, followed by the San Francisco Bay Area (-2.7 percent) and Southern California (-1.8 percent). The Central Coast remained the only major region with a median-price gain year-over-year, despite median price declines in all four counties within the region. The price increase at the regional level was due primarily to stronger sales in Santa Barbara and Santa Cruz counties, which recorded the highest median prices in the Central Coast.
• Thirty-seven counties posted a decline in median price from a year ago, but the number of counties registering a year-over-year drop in median price was the smallest so far this year. Siskiyou continued to post the biggest drop at -25.8 percent in June, followed by San Francisco (-16.1 percent) and San Benito (-12.2 percent). Fourteen counties recorded an annual increase in their median price, an improvement from eight in the previous month. Mono experienced the biggest price increase at 17.3 percent, followed by Amador (12.4 percent) and Glenn (10.8 percent).
• Nearly half of all counties registered in their median price in June, with prices in five counties surging more than 10 percent month-over-month. The price improvement from earlier this year in a high number of counties is an encouraging sign that housing values are stabilizing, but also a warning signal that housing affordability could remain low in the second half of the year.
• Housing inventory in California inched up in June from the prior month but dipped again from last year, as tight housing supply continues to be the norm. The statewide unsold inventory index (UII) in June 2023 dropped 8.3 percent from a year ago and increased 4.8 percent on a month-over-month basis. Active listings at the state level fell sharply by 34 percent from last year and registered the largest year-over-year decline since May 2021. With mortgage rates expected to be high in the next couple of months, California may not see any meaningful improvement in its housing inventory for the rest of the third quarter.
• Nearly 80 percent of all counties experienced a dip in active listing from last year, and 35 of them dropped by double-digits on a year-over-year basis. Alameda (-64.2 percent) recorded the sharpest year-over-year decline in June, followed by Contra Costa (-62.1 percent) and Mono (-59.7 percent). Ten counties recorded a year-over-year gain, with Napa registering the biggest yearly gain of 23.6 percent, followed by Siskiyou (15.2 percent) and Mariposa (14.6 percent). On a month-to-month basis, 44 counties continued to follow the seasonal pattern, recording an increase in June, while six counties registered a dip from the prior month.
• The unsold inventory index (UII) in all price ranges, except the $1 million-and-up price segment, declined by double-digits from a year ago. The mid-price segment of $750,000-$999,000 recorded the biggest year-over-year decline of -16 percent in unsold inventory index, followed by the $500,000-$749,000 price range (-12.5 percent) and the sub-$500,000 (-11.5 percent). The UII inched up slightly in the three price ranges in June, primarily due to weaker sales. The UII for the $1 million price segment was unchanged month-to-month and year-over-year.
• The median number of days it took to sell a California single-family home was 15 days in June and 14 days in June 2022.
• C.A.R.’s statewide sales-price-to-list-price ratio* was 100 percent in June 2023 and 101.3 percent in June 2022.
• The statewide average price per square foot** for an existing single-family home was $414, down from $423 in June a year ago.
• The 30-year, fixed-mortgage interest rate averaged 6.71 percent in June, up from 5.52 percent in June 2022, according to Freddie Mac.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS^® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)