The lowest mortgage interest rates in five months helped boost California home sales for the third straight month in February 2023, even as home sales prices continue to slide lower, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

In San Diego, both home sales and home prices were higher in month-over-month comparisons between February and January 2023.

On a statewide basis, closed escrow sales of existing, single-family detached homes totaled a seasonally adjusted annualized rate of 284,010 in February 2023, 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 February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The statewide sales pace in February 2023 was up 17.6 percent on a monthly basis from 241,520 in January 2023 but down 33.2 percent from a year ago in February 2022, when a revised 425,120 homes were sold on an annualized basis. 

Despite the third straight month of improvement, sales of existing single-family homes in February 2023 in California remained below the 300,000-unit pace for the fifth consecutive month.

Year-to-date statewide home sales were down 39.6 percent in February 2023.

California’s median home price retreated for the sixth straight month, declining 2.1 percent from the January 2023 median price of $751,330 to $735,480 in February 2023, the lowest price level in two years.

The February 2023 price also was lower on a year-over-year basis for the fourth consecutive month, declining 4.8 percent from the revised $772,180 recorded a year ago in February 2022. 

The statewide median price for a typical home has declined 18.3 percent from May 2022, when it reached its recent peak of $900,170. 

With home prices to remain soft throughout the rest of 2023, home shoppers can expect to see larger price drops moving through the spring home-buying season.

In San Diego, home sales increased month-over-month by 11.5 percent in February 2023, compared to January 2023. In a year-over-year comparison, between February 2023 and February 2022, home sales decreased by 32.6 percent.

February 2023 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

The San Diego median sales price for an existing, single-family detached home increased in February 2023 to $875,000, compared to $824,950, a 6.1 percent difference. In a year-over-year comparison, the median price was $888,000 in February 2022, a difference of 1.5 percent. The median is the price at which half of the homes sell for more and half for less. 

“A brief interest rate reprieve and softer home prices during January created a window of opportunity for homebuyers to dip their toes into the home-buying waters, which helped boost home sales to the highest level in five months,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “A shift toward more home sales in the lower-price segments is expected to continue to 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 bottom later this year as interest rates stabilize.”

“The recent failure of a handful of tech-focused banks caused an unexpected drop in interest rates, which could offer an opportunity in the near term for homebuyers who have been waiting on the sidelines to lock in a lower rate,” said C.A.R. Vice President and Chief Economist Jordan Levine. “However, any decline in rates is not likely to be sustainable since inflation remains high, and the Federal Reserve is willing to take some calculated risks in order to keep inflation under control.”

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

-- At the regional level, all major regions recorded year-over-year sales declines. Southern California declined 33.8 percent.

-- At the regional level, median home prices dropped from a year ago in all major regions. Prices in Southern California declined by 2 percent.

-- Housing inventory in California slipped to its lowest level in four months. The statewide unsold inventory was 3.2 months in February 2023 and 2.0 months in February 2022, a difference of 60 percent. The unsold inventory in January 2023 was 3.6 months. 

-- In San Diego, in February, the inventory of available homes for sale was 2.3 months, compared to 2.7 months in January 2023 and 1.5 months in February 2022. Other inventory figures in San Diego in 2022 include 2.2 months in December 2022, 2.9 months in November 2022, 3.0 months in October, 2.7 months in September, 2.5 months in August, 3.1 months in July, 2.4 months in June, 1.9 months in May, 1.6 months in April and 1.4 months in March. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell out given the current rate of sales.

February 2023 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

-- Unsold inventory in various home price ranges increased in February 2023 from a year ago by at least 30 percent or higher in the state. The sub-$500,000 range gained the most in unsold inventory (45.9 percent), followed by the $500,000-$750,000 range (42.3 percent), the $1 million and up (33.4 percent) and $750,000-$999,000 category (30.0 percent).

-- Weak housing demand continued to create carryover and elevate inventory on the surface, as 46 of the 51 counties tracked by C.A.R. registered an increase in active listings in February 2023 compared to February 2022.

 -- The median number of days it took to sell a California single-family home was 28 days in February, compared to 33 days in January 2023 and 9 days in February 2022. Other statewide inventory figures for 2022 include 28 days in December, 24 days in November, 23 days in October, 22 days in September, and 19 days in August.

In San Diego, the median number of days it took to sell an existing, single-family home was 17 days in February 2023, compared to 26 days in January 2023 and 7 days in February 2022. Other inventory figures for 2022 in San Diego were 20 days in December, 18 days in both November and October, 19 days in September, 15 days in August, 10 days in July, eight days in June, and seven days in May and April. The median represents a time when half the homes sell above it and half below it.

-- Once again, the statewide, sales-price-to-list-price ratio remained at below 100 percent in February 2023 at 97.7 percent, compared to 96.5 percent in January 2023. A year ago, in February 2022, the ratio was 102.6 percent. Other 2022 statewide ratio percentage figures include 96.2 percent in December, 96.7 percent in November, 97.3 percent in October, 97.7 percent in September and 98.4 percent in August. The 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 last 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.

-- The 30-year, fixed-mortgage interest rate averaged 6.26 percent in February 2023, up from 3.76 percent in February 2022, according to Freddie Mac.

California home sales edged up in January 2023 for the second straight month, while home prices continued to slide and interest rates took a breather, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

In San Diego, home sales and home prices were lower in January 2023 in monthly and yearly comparisons, said C.A.R.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 241,520 units in January 2023, 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 January 2023 pace throughout the entire 2023 year. It is adjusted to account for seasonal factors that typically influence home sales.

The January 2023 sales pace was up 0.4 percent on a monthly basis from a revised 240,630 homes sold in December 2022, and down 45.7 percent compared to a year ago in January 2022, when a revised 444,400 homes were sold on an annualized basis.

January 2023 was the third straight month for home sales at below the 250,000-unit per month sales level.

California’s median home price receded in January 2023 to $751,330, down 3.0 percent from the $774,850 recorded in December 2022, which was the fifth straight monthly decline. The January 2023 home price figure also was lower on a year-over-year basis for the third consecutive month, declining 1.9 percent from the $766,250 recorded a year ago in January 2022.

In San Diego, home sales decreased month-over-month by 17.9 percent in January 2023, compared to December 2022. In a year-over-year comparison, between January 2023 and January 2022, home sales decreased by 35.1 percent.

January 2023 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

The San Diego median sales price for an existing, single-family detached home declined in January 2023 to $824,950, compared to $850,000 in December 2022, a 2.9 percent difference. In a year-over-year comparison, between January 2023 and January 2022, when the price was $875,000, the difference was a 5.7 percent decrease.

“Thanks to slightly waning interest rates and tempering home prices, California’s housing market kicked off the new year with another step up and continued to improve in January as buyers gained more confidence in purchasing a home and the affordability outlook improving slightly,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “While the monthly sales gains have been nominal over the past two months, the market is moving in the right direction, and more gradual improvements could be coming in the months ahead as the market moves into the spring home-buying season in a few weeks.” 

“Job layoffs in recent months, primarily in the tech sector, have contributed to a decline in both sales and prices in higher-priced housing markets, particularly in the San Francisco Bay Area,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With home prices expected to remain soft and the mix of sales continuing to shift toward less expensive housing units throughout the rest of 2023, the market will see more downward price adjustments in the next few months.” 

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

-- At the regional level, all major regions recorded year-over-year sales declines of more than one-third in January 2023. Southern California dropped 41.1 percent.

-- At the regional level, median home prices dropped from a year ago in all major regions in January 2023. Prices in Southern California declined by 0.2 percent.

-- Housing inventory in California in January 2023 reached its highest level in 32 months. The January 2023 figure of 3.6 months was double the 1.8 months recorded in January 2022, the same month a year ago. The unsold inventory in December 2022 was at 2.7 months. The statewide January 2023 figure was at a level last seen in May 2020, during the government-mandated pandemic lockdown.

-- In San Diego, the inventory of available homes for sale in January 2023 increased to 2.7 months, compared to 2.2 months in December 2022 and 1.5 months a year ago in January 2022. Other inventory figures in San Diego in 2022 include 2.2 months in December 2022, 2.9 months in November 2022, 3.0 months in October, 2.7 months in September, 2.5 months in August, 3.1 months in July, 2.4 months in June, 1.9 months in May, 1.6 months in April and 1.4 months in March. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell-out given the current rate of sales.

January 2023 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

-- Unsold inventory increased in January 2023, compared to a year ago in January 2022, by 88 percent or higher in all price ranges, with the $500,000-$749,000 price range gaining the most (112.5 percent), followed by the $1 million-and-up price tier (105.0 percent), the $750,000-$999,000 (100.0 percent) and the sub-$500,000 (88.9 percent).

-- Weak housing demand continued to create carryover and elevate inventory on the surface, as 48 of the 51 counties tracked by C.A.R. registered an increase in active listings in January 2023 compared to January 2022.

-- The median number of days it took to sell a California single-family home was 33 days in January 2023, compared to 28 days in December 2022 and 12 days in January 2022. Other statewide inventory figures for 2022 include 28 days in December, 24 days in November, 23 days in October 2022, 22 days in September 2022 and 19 days in August 2022.

-- In San Diego, the median number of days it took to sell an existing, single-family home was 26 days in January 2023, compared to 20 days in December 2022 and nine days a year ago in January 2022. Other inventory figures for 2022 in San Diego was 18 days in both November and October, 19 days in September, 15 days in August, 10 days in July, eight days in June and seven days in May and April. The median represents a time when half the homes sell above it and half below it.

-- Once again, the statewide, sales-price-to-list-price ratio remained at below 100 percent in January 2023 at 96.5 percent. A year ago, in January 2020, the ratio was 101.2 percent. Other 2022 statewide ratio percentage figures include 96.2 percent in December, 96.7 percent in November, 97.3 percent in October, 97.7 percent in September and 98.4 percent in August. The 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 last 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.

-- The 30-year, fixed-mortgage interest rate averaged 6.27 percent in January 2023, up from 3.45 percent in January 2022, according to Freddie Mac.

San Diego County staff recommends home energy audits during the home sales process.

This strategy is part of a  "Draft Playbook"  released by County staff.  The Playbook is described as a "menu of actions" that is intended as a resource for local governments who seek to take action on decarbonization.

PSAR opposes point-of-sale mandates.  Point of Sale mandates hurt buyers and sellers. They make homes more expensive to buy and since they target such a small number of homes, they do very little to address carbon reduction.

The County is accepting feedback on the Draft Playbook until Thursday, February 2.  Please leave a comment now explaining why point-of-sale or "time-of-sale" mandates are a bad idea.  It is most important to demonstrate how these mandates will impact your clients. 

To add a comment, click on the box below to open the County document, scroll to the section of the document you would like to comment on, and click the section.  A popup window will appear to allow you to leave a comment. 

You will find that point-o-sale mandates are described in the "Requirement" section of items 4.4.1 and item 5.5.1. Time-of-sale is also referred to in section 5.5.4.2.  Click on each of those sections and leave a comment.

For a list of reasons why point-of-sale mandates are a bad idea, you are welcome to refer to the letter from PSAR President Jason Lopez to the County, CLICK HERE to see the letter. You are encouraged to share those ideas in your comments. 

For questions or concerns, please email gad@psar.org. 

A short respite in rising interest rates helped edge up California home sales in December 2022 to break a three-month sales decline. However, for the year as a whole, statewide home sales were down 23.1 percent from 2021.

According to the latest home sales and price report from the California Association of REALTORS® (C.A.R), closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 240,330 in December, 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 2022 if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The December 2022 statewide sales pace for existing, single-family homes was up 1.1 percent on a monthly basis from 237,740 in November 2022 and down 44.1 percent from a year ago in December 2021, when 429,860 homes were sold on an annualized basis.

December 2022 was the second straight month for home sales below the 250,000-unit level statewide.

Meanwhile, California’s median home price remained on a downward trend for the fourth straight month. It has been down on a monthly basis for the past six of seven months.

The December 2022 statewide median home price of $774,580 was down 0.4 percent from the $777,500 recorded in November 2022. The December 2022 price also was lower on a year-over-year basis for the second consecutive month, declining 2.8 percent from the $796,570 recorded last December 2021. 

For 2022 as a whole, California’s median home price increased 4.5 percent from 2021’s $786,750 figure but is expected to decline by 8.8 percent in 2023.

In San Diego, home sales increased month-over-month by 0.8 percent in December 2022, compared to November 2022. However, in a year-over-year comparison, between December 2022 and December 2021, home sales decreased by 43.2 percent from the same month a year ago.

December 2022 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

In San Diego, the median sales price for an existing, single-family detached home in San Diego County declined in December 2022 by 1.7 percent or $15,000 to $850,000, compared to $865,000 in November 2022. However, in a year-over-year comparison, between December 2022 and December 2021, the median home price increased by 1.6 percent from $836,700 from the same month a year ago.

“It’s encouraging to see an uptick in December’s home sales as buyers took advantage of a slightly more favorable lending environment that provided them with a window of opportunity to enter the California housing market,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “As buyers and sellers gradually adapt to the new normal, we are seeing a shift toward a more balanced market. With both sides slowly adjusting their expectations, it’s hopeful that we’ll see sales ratcheting higher as market conditions improve further throughout 2023.”

“Home prices are holding up relatively well, despite rising interest rates and falling housing demand in recent months. Tight housing inventory was a primary factor preventing prices from free falling as new active listings continued to dip to reach the lowest level in at least the past five years,” said C.A.R. Vice President and Chief Economist Jordan Levine. “While depressed inventory will preclude major price declines beyond the 8.8 percent we forecast for this year, it will also slow sales growth and prevent the housing market from having a rapid recovery.”

Other key points from C.A.R.’s December 2022 resale housing report include:

 -- At the regional level, all major regions recorded year-over-year sales drops of more than 35 percent, with Southern California incurring the biggest decline of all regions for the third month in a row at minus 48.3 percent.

-- At the regional level, median home prices dropped from a year ago in all major regions, with the San Francisco Bay Area experiencing the biggest annual price decline at 9.6 percent. The median home price drop in the Southern California region for the month was 0.9 percent.

December 2022 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

-- Housing inventory in California continued to rise on a month-over-month comparison in 2022, compared to 2021, except as the year came to an end. The statewide unsold inventory index in December 2022 was 2.7 months, which was more than double the 1.2 months recorded in December 2021 but was down from the 3.3 months registered in November 2022.

-- In San Diego, the inventory of available homes for sale in December 2022 declined to 2.2 months, compared to 2.9 months in November 2022. A year ago, in December 2021, the figure was one month. Other inventory figures in San Diego in 2022 include 3.0 months in October, 2.7 months in September, 2.5 months in August, 3.1 months in July, 2.4 months in June, 1.9 months in May, 1.6 months in April and 1.4 months in March. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell-out given the current rate of sales.

-- Unsold inventory in all home price ranges on a statewide basis increased in December 2022, compared to December 2021, by 92 percent or more. For example, in the final month of the year, the unsold inventory in the $1 million and higher price range gained the most (154.5 percent), followed by the $750,000-$999,000 price range (145.5 percent), the $500,000-$749,000 (136.4 percent) and the sub-$500,000 segment (92.9 percent).

-- The median number of days it took to sell a California single-family home was 28 days in December 2022, 24 days in November 2022 and 12 days in December 2021. Other statewide inventory figures for 2022 include 23 days in October 2022, 22 days in September 2022 and 19 days in August 2022.

-- In San Diego, the median number of days it took to sell an existing, single-family home was 20 days in December 2022, compared to 18 days in both November 2022 and October 2022 and eight days in December 2021. Other San Diego days-on-market figures for 2022 include 19 days in September, 15 days in August, 10 days in July, eight days in June and seven days in May and April. The median represents a time when half the homes sell above it and half below it.

-- Once again, the statewide, sales-price-to-list-price ratio remained at below 100 percent in December 2022 at 96.2 percent. A year ago in December 2021, the ratio was 101.2 percent. Other 2022 statewide ratio figures include 96.7 in November, 97.3 percent in October, 97.7 percent in September and 98.4 percent in August. The 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 last 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.

-- The 30-year, fixed-mortgage interest rate averaged 6.36 percent in December, up from 3.10 percent in December 2021, according to Freddie Mac.

Cal Fire is looking for public input on proposed changes.

The California Department of Forestry and Fire Protection, typically called CAL Fire, is updating its wildfire risk maps for rural, unincorporated areas throughout the state. It’s been 15 years since the maps were updated.

The updates have the potential for increasing the cost of homeowners insurance in those rural communities reclassified by CAL Fire as more susceptible to wildfires. Metropolitan cities and urban areas are not included in the current updates process.

The public is invited to comment and ask questions about updates to CAL Fire’s Wildfire Hazard Severity Zones (WHSZ) maps. The deadline for public comment is Feb. 3, 2023.

PSAR members are invited to visit a website and enter a property’s address on a map showing CAL Fire’s updates to WHSZ maps. Visit https://osfm.fire.ca.gov/divisions/community-wildfire-preparedness-and-mitigation/wildfire-preparedness/fire-hazard-severity-zones/, then scroll to the bottom to find “FHSZ Viewer” and enter an address in the search bar.

You can also visit https://bit.ly/calfiremaps to compare proposed 2022 updates to WHSZ maps, compared to WHSZ maps used in 2007, the year when WHSZ maps were last updated. At this website, you can use a swipe tool to toggle between the maps from 2007 and 2022, and see how ratings for areas have been changed to moderate, high and very high risks.

A CAL Fire statement said fire scientists and wildfire mitigation experts have used science-based and field-tested models to assign a hazard score based on factors that influence fire likelihood and fire behavior. Factors include fire history, existing and potential fuel (natural vegetations), predicted flame length, blowing embers, terrain and typical fire weather for an area.

CAL Fire also said insurance companies, including insurance agents and brokers, have been involved throughout the process to ensure cooperation between all sectors to better support Californians.

These changes to wildfire ratings are expected to impact insurance rates, as well as eligibility. While California has a FAIR property insurance plan that provides basic insurance to individuals unable to get coverage, this coverage is considered a “temporary safety net” until the homeowner can obtain a traditional homeowners policy. Even then, homeowners may need to obtain additional insurance from another carrier to increase their coverage to an adequate level.

Written comments can be mailed to FHSZ Comments, California Dept. of Forestry and Fire Protection, P.O. Box 944246, Sacramento, CA 94244-2460.

Comments also can be emailed to Josh Black, San Diego’s contact for the WHSZ map updates program. Black can be reached at josh.black@fire.ca.gov or (619) 609-3413.

PSAR's Mission is to empower Real Estate Professionals.

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth and development of the Real Estate industry in San Diego County.

The Pacific Southwest Association of REALTORS® (PSAR), a 4,000-member real estate trade group for San Diego-area REALTORS®, recently noted the 10-year anniversary of its merger between two San Diego regional REALTOR® associations, including the El Cajon-based East San Diego County Association of REALTORS® (ESDCAR) and the Chula Vista-based PSAR.

PSAR's Mission is to empower Real Estate Professionals.

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth and development of the Real Estate industry in San Diego County.

Housing demand continued to fall as rising interest rates dampened the California housing market in November 2022.

In November 2022, home sales were at their lowest annualized pace since October 2007 and the largest year-over-year sales drop in the past four decades, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R).

Overall, home sales have been on a downward trend for 17 straight months on a year-over-year basis. November 2022 was the fourth time in the last five months that sales dropped more than 30 percent from the year-ago level.

November 2022’s monthly 13.2 percent sales decline was worse than the long-run average of -0.5 percent change recorded between October and November in the past 43 years.

Sales in all price segments dropped more than 40 percent year-over-year, with the $2 million plus price segment falling the most at 47.7 percent. The most affordable market (sub-$300,000) experienced the smallest sales drop at 41.4 percent.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 237,740 in November, 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 2022 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

November’s sales pace was down 13.2 percent on a monthly basis from 274,040 in October and down 47.7 percent from a year ago when 454,450 homes were sold on an annualized basis. The year-to-year sales decline was the biggest since 1980.

Year-to-date statewide home sales were down 21.2 percent in November 2022.

In San Diego, home sales dropped 44.1 percent in November 2022, compared to a year ago in November 2021, and 11.4 percent lower in a month-over-month comparison with October 2022.

Meanwhile, California’s median home price declined for the third straight month in November 2022, dropping 3.0 percent to $777,500 from the $801,190 recorded in October 2022. November 2022’s price was 0.6 percent lower than the $782,480 recorded a year ago in November 2021. November 2022 also marked the first year-over-year price decline in 30 months. The November 2022 price was also the lowest since February 2022.

November 2022 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

In San Diego, the median sales price for an existing, single-family detached home in San Diego County rose 0.6 percent to $865,000 in November 2022, compared to $860,000 in October 2022. The November 2022 median price was 2 percent higher than the year-ago price of $847,750 in November 2021. The median is the price at which half of the homes sell for more and half for less.

“While interest rates are higher than year-ago levels, they have been declining since early November from the recent peak of over 7 percent,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “With home prices cooling and market competition easing in recent months, some qualified buyers who missed out on the hurried market of the last two years are taking advantage of the shift and finding sellers more willing to negotiate than they have been up to this point.”

“As expected, higher borrowing costs, lower demand, and rising uncertainty finally caused prices to moderate for the first time in more than a decade while home sales dropped further,” said C.A.R. Vice President and Chief Economist Jordan Levine. “With mortgage rates rising at the fastest pace in years, sales and price growth will likely remain on a downward trend in the short term. However, pending sales suggest that the pace of declines should moderate in the coming months.”

Other key points from C.A.R.’s November 2022 resale housing report include:

 -- At the regional level, Southern California saw the biggest year-over-year sales drop again as all six counties within the region marked sales declines of more than 44 percent in November 2022.

-- Sharp declines in housing demand continued to apply downward pressure on home prices as median prices in three of the five major regions dropped mildly from a year ago. Southern California’s (0.0 percent) median prices were virtually unchanged or flat on a year-over-year basis, despite having the largest sales drops among all regions in November 2022.

-- More counties began to experience negative price growth in November 2022 as 33 counties registered median prices decline, a jump from 22 counties compared to the prior month.

November 2022 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

-- Housing inventory in November 2022 in California continued to rise both month-to-month and year-to-year as the market entered its holiday season and home sellers remained on the sideline. The statewide unsold inventory index was 3.3 months in November 2022 and 3.2 months in October 2022. The November 2022 index was more than double the level of 1.6 months in November 2021.

-- Housing supply in California increased in November 2022 in all price ranges by 88 percent compared to a year ago in November 2021. Unsold inventory in the $1 million+ price range rose the most (128.6 percent), followed by the $500,000-$749,000 price range (113.3 percent), the $750,000- $999,000 (113.3 percent) and the sub-$500,000 (88.9 percent) ranges.

-- In San Diego, the inventory of available homes for sale in November 2022 declined to 2.9 months, compared to 3.0 months in October 2022 and 1.3 months a year ago in November 2021. Other inventory figures in 2022 include 2.7 months in September, 2.5 months in August, 3.1 months in July, 2.4 months in June, 1.9 months in May, 1.6 months in April and 1.4 months in March. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell-out given the current rate of sales.

-- The median number of days it took to sell a California single-family home was 24 days in November 2022, compared to 23 days in October 2022, 22 days in September 2022, 19 days in August 2022 and 11 November 2021.

-- In San Diego, the median number of days it took to sell an existing, single-family home was 18 days in both November 2022 and October 2022, compared to 19 days in September 2022 and nine days in November 2021. Other days-on-market figures in 2022 include 15 days in August, 10 days in July, eight days in June and seven days in May and April. The median represents a time when half the homes sell above it and half below it.

 -- Once again, the statewide, sales-price-to-list-price ratio remained at below 100 percent. It was 96.7 in November 2022, compared to 97.3 percent in October 2022, 97.7 percent in September 2022 and 98.4 percent in August 2022. A year ago in 2021, it was 104 percent in November, 101.5 percent in October, 101.9 percent in September and 102.8 percent in August. The 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 last 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.

-- The 30-year, fixed-mortgage interest rate averaged 6.81 percent in November 2022, up from 3.07 percent in November 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 6.01 percent, compared to 2.51 percent in November 2021.

Call for Nominations!!!

Do you know a fantastic PSAR REALTOR^®, Broker/Office Manager, or Affiliate? Now is the time to give them the recognition they deserve. Three other awards will also be presented at the R.E.A.L. Awards Event.  PSAR Distinguished Service Award, PSAR Community Service Award, and the PSAR Friend of the Industry Award.
Please take a few minutes to nominate your candidate(s).

You can use either of these two methods to nominate.

Nominations must be received by Friday, December 16, 2022.

PSAR shall recognize a REALTOR^®, Broker, and Affiliate each year as well as the following three awards:

___________________________

PSAR's Mission is to empower Real Estate Professionals

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth and development of the Real Estate industry in San Diego County.

Higher interest rates led to further decline in the California housing market in October 2022 as home sales hit their lowest level since February 2008 with the largest year-over-year decline since December 2007, outside the pandemic.

According to the latest home sales and price report from the California Association of REALTORS® (C.A.R.), year-to-date statewide home sales were down 18.5 percent in October 2022.

Also in October 2022, sales were down 10.4 percent on a monthly basis from 305,680 units sold in September 2022 and down 36.9 percent from a year ago in October 2021, when 434,170 homes were sold on an annualized basis.

Overall, statewide home sales have been on a downward trend for 16 straight months on a year-over-year basis. October 2022 was the third time in the last four months that sales dropped more than 30 percent from a year-ago level.

The monthly 10.4 percent sales decline in October 2022 was worse than the long-run average of +0.5 percent change recorded between September and October in the past 43 years.

Sales in all price segments continued to drop by 30 percent or more year-over-year, with the $750,000-$999,000 price segment declining the most at 40.8 percent. The high-end market ($1 million-$1,999,000) experienced the smallest sales drop at 34.1 percent.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 274,040 in October, 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 2022 if sales maintained the October pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

In San Diego County, home sales dropped 40.7 percent in October 2022,  compared to a year ago in October 2021, and 15.6 percent lower in a month-over-month comparison with September 2022.

San Diego’s October 2022 year-over-year drop of 40.7 percent compares to September 2022’s year-over-year drop of 33.2 percent.

Home prices also continued declining statewide and locally.

California’s median home price declined 2.5 percent in October 2022 to $801,190 from the $821,680 price recorded in September 2022. The October 2022 price was a mere 0.3 percent higher than the $798,440 price recorded a year ago in October 2021 and was the smallest year-over-year price gain in 29 months. October 2022 marked the fifth consecutive month with a single-digit annual price increase.

With the average 30-year fixed mortgage rate expected to remain above 6.5 percent for the rest of the year, home prices are expected to moderate even further in the coming months as affordability will remain challenging.

October 2022 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

In San Diego, the median sales price for an existing, single-family detached home in San Diego County declined 4.3 percent to $860,000 in October 2022, compared to $899,000 in September 2022. The October 2022 median price was 1.2 percent higher than the year-ago price of $850,000 in October 2021. The median is the price at which half of the homes sell for more and half for less.

“While October’s sales and price results were weaker than what we’ve experienced in the past couple of years and could slow further in the upcoming off-season, the market bottom could be in sight,” said 2023 C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “Homes are still selling relatively quickly at 23 days on the market, one in four homes is selling above list price due to limited inventory, and with median price growth remaining positive in four of the five price segments, home prices are holding up reasonably well.”

“Excluding the three-month pandemic lockdown period in spring 2020, October’s sales level was the lowest since February 2008. With pending sales showing a 50 percent drop from a year ago, we can expect additional tempering in housing demand in the coming months, as we previously forecasted,” said C.A.R. Vice President and Chief Economist Jordan Levine. “Home prices will also moderate further over the next several months as interest rates remain elevated in the near term and seasonal factors come into play.”

Other key points from C.A.R.’s October 2022 resale housing report include:

-- At the regional level, home sales continued to fall sharply from last year, with four of the five major regions falling more than 35 percent from last year. Southern California had the biggest annual drop in sales at 40.8 percent, as every county within the region experienced a sales decline of more than 30 percent in October.

-- At the county level, all but one California county recorded a year-over-year home sales decline in October, with 41 of them plunging more than 20 percent from the same period a year ago.

-- At the county level for home prices, more than half of all counties in California maintained positive year-over-year median-price growth in October 2022. Prices were up from last year by double-digits in eight counties in October 2022 compared to five counties in the prior month.

October 2022 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

-- Housing inventory in October 2022 in California rose on a month-to-month basis and year-to-year basis at the beginning of the fourth quarter. Many potential buyers continued to put their home-buying plans on hold. The statewide unsold inventory index increased to 3.3 months in October 2022 from 2.9 months recorded in September 2022 and from 1.8 months recorded a year ago in October 2021.

-- Housing supply in California increased in October 2022 in all price ranges by 75 percent or more overall from a year ago in October 2021. Inventory improved the most (88.2 percent) for homes priced from $500,000 to $749,000. Other inventory increases in percentages included 83.3 percent for homes priced from $750,000 to $999,000, 82.4 percent in the $1 million and up price range, and 75 percent in the sub-$500,000 price range.

-- In San Diego, the inventory of available homes for sale in October 2022 increased to 3.0 months, compared to 2.7 months in September 2022, and 1.5 months a year ago in October 2021. Other inventory figures in 2022 include 2.5 months in August, 3.1 months in July, 2.4 months in June, 1.9 months in May, 1.6 months in April and 1.4 months in March. Inventory levels indicate the number of months it would take for the available supply of homes on the market to sell-out given the current rate of sales.

-- The median number of days it took to sell a California single-family home was 23 days in October 2022, compared to 22 days in September 2022, 19 days in August 2022 and 11 days in October 2021.

-- In San Diego, the median number of days it took to sell an existing, single-family home was 18 days in October 2022, compared to 19 days in September 2022 and nine days in October 2021. Other days-on-market figures in 2022 include 15 days in August, 10 days in July, eight days in June and seven days in May and April. The median represents a time when half the homes sell above it and half below it.

-- Once again, the statewide, sales-price-to-list-price ratio remained at below 100 percent. It was 97.3 percent in October 2022, compared to 97.7 percent in September 2022 and 98.4 percent in August 2022. A year ago in 2021, it was 101.5 percent in October, 101.9 percent in September and 102.8 percent in August. The 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 last 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.

-- The 30-year, fixed-mortgage interest rate averaged 6.90 percent in October, up from 3.07 percent in October 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 5.71 percent, compared to 2.54 percent in October 2021.

We know that tour data availability is vital in one's business as a realtor, and CRMLS delivers!

Effective immediately, CRMLS Paragon and Matrix users now have equal access to tour data provided by San Diego MLS. So that you know – the system has been automatically updated; no change is needed on your end. Furthermore, San Diego MLS can now access the CRMLS tour data creating a new two-way exchange. 

You can learn more about the tour data in Matrix and Paragon here.

This new data sharing data will bring more realtors the information you need to conduct your business successfully.

A complete list of changes is available on the CRMLS Knowledge Base page. Click here to see the updates.