According to a recent report by the California Association of REALTORS® (C.A.R.), the California housing market is showing signs of stabilization. Despite rising interest rates, the demand for California housing remains resilient, and the market continues to be competitive.
For reference, July’s home sales and price report provides valuable insights into the current state of affairs. Here are some key findings from the report:
- Existing, single-family home sales totaled 269,180 in July on a seasonally adjusted annualized rate. This reflects a 3.0 percent decrease from June and a 9.0 percent decrease from July 2022.
- During the same period, the statewide median home price was $832,340, down 0.7 percent from June but up 0.2 percent from July 2022.
According to Narada Real Estate Investments, the California housing market’s resilience can be attributed to a resilient economy with solid job growth and a shortage of available homes on the market. According to a report by the Public Policy Institute of California, California has experienced ten years of job growth, which is the longest expansion on record. Over the past 30 years, job growth has averaged about 1.2 percent annually in California and 1.1 percent for the nation as a whole, adding on average 385,000 new jobs every year.
A recent jobs report shows that last year California had a lower unemployment rate and better job creation than previously estimated. In fact, California created a record 42 percent of the nation’s new jobs as of last December, significantly outpacing the nation’s job growth rate. Updated data from the Governor’s office shows that California outpaced the rest of the nation in year-over-year job gains, with the state posting a 7.4 percent increase in jobs compared to the national job increase of 4.6 percent for the same time period.
As we transition into the off-peak homebuying season, regional insights provide valuable context. Sales declines are showing signs of moderation, with most major regions experiencing sales decreases of less than 15 percent from the previous year. The Central Coast region notably posted the smallest decline, showcasing the only increase in annual sales in the region.
While challenges such as inventory shortages and rising interest rates persist, the market’s resilience and positive indicators offer hope for prospective buyers. If you’re looking to buy a house in California, this could be a good time to do so.
For more insights into the current costs to finance a home, please visit our website and use our online mortgage estimate tools.