| LIFE IN SOLERA | AUGUST 2023 | 11
Interest rate reprieve boosts California home sales to highest level
in 8 months:
Existing single-family home sales totaled 289,460 in May, up 9.8
percent in April and down 23.6 percent from May 2022.
May's statewide median home price was $836,110, up 3 percent
from April and down 6.4 percent from May 2022.
Year-to-date statewide home sales were down 35.1 percent in May.
California's housing market rebounded in May as home sales rose to
the highest level in eight months. "This bounce back in May's home
sales and price shows the resilience of California's housing market and
is a testament to the value that consumers place on homeownership"
said C.A.R. President Jennifer Branchini. The housing market is
stabilizing and even showing signs of improvement. Nearly half of
homes are selling above asking price, a few less sellers are reducing
listing prices, and homes for sale are going into pending status in just
two weeks compared to 30 days early this year.
Despite the improvement from early 2023, the median home
price in California dipped 6.4 percent in a year-over-year basis for
the 7th consecutive month. However, more negative annual price
changes will be observed in the coming months as interest rates are
expected to remain high in the third quarter of 2023. Federal Reserve
Chairman Powell recently suggested that they are prepared to raise
rates a couple more times to tame inflation. Even with reduced home
buyer demand, California still has more home buyers than homes to
put them in.
Source: www.car.org
Home Sales & Price Report, May 2023
By Glenn and Nona Bradd, Associate Brokers and Residents
