According to the latest data from the California Association of Realtors (CAR), the California housing market experienced a slight recovery in February 2023. The report shows a third consecutive month of improving sales, with favorable interest rates and softening home prices driving buyers to enter the market.
The statewide annualized sales figure of existing, single-family detached homes was 284,010 in February, up 17.6% from January but down 33.2% from the previous year. The median home price in February was $735,480, a decline of 2.1% from January and 4.8% from February 2022. Year-to-date statewide home sales were down 39.6% in February.
CAR President Jennifer Branchini noted that the recent shift towards more home sales in the lower-price segments is expected to continue and further soften home prices. However, with the availability of homes remaining extremely tight, and housing supply conditions not expected to improve any time soon, prices should find a bottom later this year as interest rates stabilize.
The lower mortgage rates in California have given homebuyers an opportunity to enter the housing market and purchase properties at more affordable prices. However, the housing supply remains limited, making it difficult for buyers to find available properties that meet their criteria. This has led to increased competition among buyers, driving up the prices of available homes.
On the other hand, sellers have been facing challenges in the market due to declining home prices. The market conditions have made it harder for them to sell their properties at the prices they desire, leading to a slowdown in the number of homes being put on the market.
Despite the challenges, industry experts predict that the California housing market will continue to stabilize in the coming months, with prices gradually finding their bottom later in the year. While interest rates are not expected to remain low for long, buyers are encouraged to take advantage of the current window of opportunity and enter the market before prices start to rise again.
Overall, the California housing market is in a state of flux, with both buyers and sellers navigating through uncertain market conditions. However, with the continued support of favorable interest rates and increased housing supply in the future, the market is expected to find its equilibrium, providing opportunities for both buyers and sellers alike.
If you would like to discuss today's market and whether now is a good time for you to buy or sell, give me a call at (562) 900-9430.