| LIFE IN SOLERA | DECEMBER 2023 | 13
In October 2023, there were 461 closed sales per day in California.
At the same time, there was 468 pending sales per day and 553 new
listings per day.
Despite mortgage rates hitting a two-decades high in recent
weeks, new home sales continued to increase in September. With
supply remaining tight in the existing housing market, 62 percent of
builders continued to offer price cuts and interest rate buy downs as
incentives to lure qualified buyers into the new home market.
The Federal Reserve Open Market Committee (FOMC) is set to
meet next week to decide what , if anything, to do with interest rates.
The future indicates that the probability of another rate hike is very
low. Currently, there is a 95 percent chance that the Fed will hold
rates steady at the current range. After Dec. 13, the FOMC will release
updated projections of rate changes for 2024.
Housing supply remains the limiting factor in California's housing
market but higher rates have also had a significant impact on
homebuyer demand. However, the recent surge in mortgage rates
has created opportunities for new homebuyers as well. Homes are
taking longer to sell with the median days on market rising to 19 days
last week. More than one third of active listings have already reduced
price, and sellers are willing to consider other concessions to get
their homes sold that may not have been on the table last year. At the
same time, homes that are priced right and show well are still selling
relatively quickly and two out of five last week still closed above list
price. It remains a great time to buy and sell, but buyers and sellers
need to be cognizant of the recent market situation and adjust their
behavior accordingly.
Source: www.car.org, October 2023
Real Estate Report
By Glenn and Nona Bradd, Associate Brokers and Residents
Latest California Market Data
