Persistently high mortgage rates are causing fewer home sales and lower home selling prices in the California housing market, according to the latest home sales and price report from the California Association of Realtors (C.A.R.). 

In San Diego, sales of existing, single-family homes in September 2023 declined 19.4 percent in a month-over-month comparison with August 2023, while the decline was 25.3 percent in a year-over-year comparison with September 2022.

Statewide, the sales pace for existing, single-family homes in September 2023 was down 5.4 percent with 254,740 units sold in August 2023, and down 21.5 percent compared to September 2022, when 307,000 homes were sold on an annualized basis. Statewide year-to-date home sales were down 28.5 percent in September 2023.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 240,940 in September, 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 September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Sales of existing single-family homes in California remained below the 300,000-unit pace for the 12th month in a row. It was the fourth consecutive month for lower statewide home sales and the 27th straight drop in annual comparisons.

Year-to-date statewide home sales were down 28.5 percent in September.

Meanwhile, the median sales price for an existing, single-family detached home in San Diego County in September 2023 dipped by 2.7 percent to $973,100 from the $1 million mark posted in August 2023. A year ago, in September 2022, the median price for San Diego was $899,000, a year-over-year difference of 8.2 percent.

September 2023 County Sales and Price Activity

(Regional and condo sales data not seasonally adjusted)

Statewide, in September 2023, the median price was $843,340, which was 2.7 percent lower than the August 2023 figure of $859,800, and 3.2 percent lower than the September 2022 figure of $817,150. The median represents a price where half of the total number of homes sold above it and half below.

While September’s median price took a step back from the 15-month high recorded in August, the month-to-month decline was in line with the long-run August-to-September price adjustment of -1.8 percent observed in the last 44 years. Prices are likely to experience monthly declines in the next couple of months, following the traditional seasonal pattern. Positive year-over-year price growth is expected to persist through the remainder of the year as housing supply is expected to remain tight.

“With the market being less competitive, there are greater opportunities for consumers who need to purchase a home for personal reasons or those who can qualify to purchase at today’s interest rates,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “More sellers are making concessions as homes are taking longer to sell, fewer homes are selling above asking price, and there are more homes to choose from.”

“As mortgage rates surge to new highs not seen in more than two decades, home sales are being tested and are likely to remain tepid for the next few months,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “With the Fed planning on holding rates higher for longer, the cost of borrowing will remain elevated and may not come down much in the near term. Housing affordability will continue to hinder sales activity for the rest of the year, especially in the low- and mid-price ranges.”

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

•  At the regional level for Southern California, year-over-year sales declined in September 2023 by 21.7 percent. In August 2023, the figure was 13.9 percent.
  
  
• At the regional level for Southern California, median home prices in September increased from a year ago by 4.7 percent. In August, the figure was 4.4 percent.
  
  
• Housing supply in California continued to shrink from a year ago in September as mortgage rates remained elevated. The statewide unsold inventory index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, was 2.8 in September 2023. It increased 16.7 percent on a month-over-month basis and was unchanged from a year ago in September 2022.

September 2023 County Unsold Inventory and Days on Market

(Regional and condo sales data not seasonally adjusted)

• In San Diego in September 2023, the inventory of available homes for sale was 2.5 months, compared to 1.9 months in August, 2.0 months in July 2023 and 2.5 months in August 2022. Other unsold inventory figures in 2023 in San Diego included 2.0 months in June, 1.7 months in May, 1.9 months in April, 1.7 months in March, 2.3 months in February and 2.7 months in January. 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.
  
  
•  Active listings at the state level continued to dip on a year-over year basis for five straight months, with the decline in each of the last six months all registering more than 20 percent year-over-year. With rates remaining high and the market transitioning to the low season, active listings will not likely improve much, if at all, before the end of the year.
  
  
• The median number of days it took to sell a California single-family home was 18 days in September and 27 days in September 2022.
  
  
•  In San Diego, the median number of days it took to sell an existing, single-family home was 14 days in September, compared to 13 days in August 2023, 12 days in July 2023 and 18 days in August 2022. Other median-time-on-the-market figures for San Diego in 2023 include 11 days in June, 12 days in May and April, 15 days in March, 17 days in February and 26 days in January. The median represents a time when half the homes sell above it and half below it.
  
  
• The statewide, sales-price-to-list-price ratio on a monthly basis in 2023 was at 100 percent in September, August, July, June, May and April, 99.1 percent in March, 97.7 percent in February and 96.5 percent in January. A year ago, in September 2022, the ratio was 97.6 percent. 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 7.20 percent in September, up from 6.11 percent in September 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Check out the DRE 2o23 Summer Bulletin and gain awareness of the DRE's priorities this quarter. Below are highlights.  Download the PDF for the full update. Take a look at the California DRE Summer Bulletin here.

• Commissioner’s Update
• New Pre-License Statutory Course Requirements Coming in 2024
• Vacant Land Property Scams
• Originating Nontraditional Mortgage Loan Products
• Succession Planning
• Ensure Protection of Trust Funds Collected by Real Estate Brokers
• What Would You Tell Your Younger Self?  
  
  

Douglas R. McCauley

Real Estate Commissioner
Department of Real Estate

_______________________________________________

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 median sales price for an existing single-family home in San Diego hit the $1 million mark in August 2023, according to the latest home sales and price report from the California Association of Realtors (C.A.R.). 

August 2023’s median price was a 3.2 percent increase from $969,020 figure for the previous month of July 2023. A year ago, in August 2022, the median price figure was $886,250, a year-over-year difference of 12.8 percent.

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

Statewide, in August 2023, the median price reached $859,800, its highest level in 15 months. The statewide median price reached its peak of $893,200 in May 2022.

The August 2023 median price for the state also was the largest year-over-year gain in 14 months. In July 2023, the median price for California was $832,400, a difference of 3.5 percent with August 2023. A year ago, in August 2022, the California median price was $834,740, a 3.0 percent difference with August 2023.

Meanwhile, as home prices hit high levels, home sales in California declined for the third straight month in August 2023.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 254,740 in August, 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 August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The sales pace in August 2023 was down 5.3 percent on a monthly basis from a revised 268,940 in July 2023 and down 18.9 percent from a year ago in August 2022, when a revised 314,270 homes were sold on an annualized basis. Sales of existing single-family homes in California remained below the 300,000-unit pace for the 11th month in a row. The sales pace decline on an annual basis was the 26th straight drop.

Rising mortgage rates and an ongoing shortage of homes for sale continued to hamper the California housing market resulting in a 29.2 percent decline in year-to-date statewide home sales from January to August 2023.

Meanwhile, the sales pace for existing, single-family detached homes in San Diego in August 2023 was 2.7 higher when compared with July 2023. However, August 2023 home sales were down 16.0 percent in a year-over-year comparison with August 2022.

“Despite persistently high mortgage rates and availability of homes remaining extremely tight, there’s still solid interest from prospective buyers,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “The highly competitive housing market continued to provide support to home prices, with the statewide median price steadily improving since early 2023. As California housing prices continue to stabilize, buyers and sellers on the sidelines will get back into the market once interest rates begin to moderate in the fourth quarter.”

“A reacceleration of interest rates since April, combined with tight housing inventory pushed down California home sales to a seven-month low in August,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While rates may remain elevated for a little longer, macroeconomic fundamentals are expected to soften starting in the last quarter of this year. Mortgage rates should begin to ease, albeit gradually, in the next couple months, and provide a much-needed boost to both the supply and the demand sides of the housing market.”

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

• At the regional level for Southern California, year-over-year sales declined in August 2023 by 13.9 percent. In July 2023, the figure was 14 percent.
  
  
• At the regional level for Southern California, median home prices in August 2023 increased from a year ago by 4.4 percent. In July 2023, the figure was 2.7 percent.
  
  
• Home prices continued to stabilize across the state, with 19 counties experiencing year-over-year median price decreases in August, compared to 27 counties in July and 37 in June.
  
  
• Housing supply in California continued to shrink from a year ago in August as mortgage rates remained elevated. The statewide unsold inventory index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, was at 2.4 months in August 2023, 2.5 months in July 2023 and 2.8 months in August 2022. The statewide unsold inventory index was down 14.3 percent on a year-over-year basis.

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

• In San Diego in August 2023, the inventory of available homes for sale was 1.9 months, compared to 2.0 months in July 2023 and 2.5 months in August 2022. Other unsold inventory figures in 2023 in San Diego included 2.0 months in June, 1.7 months in May, 1.9 months in April, 1.7 months in March, 2.3 months in February and 2.7 months in January. 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.
  
  
• Active listings at the state level have fallen for five months in a row in a year-over-year comparison. The year-over-year decline has exceeded 20 percent the past four months.
  
  
• Active listings in a month-over-month comparison improved slightly from July 2023 to August 2023 as fewer listings were taken off the market due to the slowdown in closed sales in August.
• The median number of days it took to sell a California single-family home was 18 days in August 2023, 16 days in July 2023 and 23 days in August 2022.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 13 days in August 2023, compared to 12 days in July 2023 and 18 days in August 2022. Other median-time-on-the-market figures for San Diego in 2023 include 11 days in June, 12 days in May and April, 15 days in March, 17 days in February and 26 days in January. The median represents a time when half the homes sell above it and half below it.
  
  
• The statewide, sales-price-to-list-price ratio on a monthly basis in 2023 was at 100 percent in August, July, June, May and April, 99.1 percent in March, 97.7 percent in February and 96.5 percent in January. A year ago, in August 2022, the ratio was 98.4 percent. 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 7.07 percent in August, up from 5.22 percent in August 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

C.A.R. strongly opposes ACA 13, a proposed state constitutional amendment. This proposal aims to make it harder for California voters to bring about changes through initiatives by increasing the percentage of votes needed to pass state and local measures. C.A.R. is against ACA 13 because it would weaken Proposition 13, potentially leading to higher taxes on homeowners and restricting their ability to prevent tax increases.

C.A.R. has issued a Red Alert, urging all California REALTORS® to contact their Assemblymembers and ask them to vote against ACA 13.

Look for the email sent to you from realtorparty@car.org with the subject line "RED ALERT: Protect Prop 13 and Voter Rights."  If you don't see it, please check your spam.

Currently, voter initiatives and constitutional amendments (except for certain taxes) require a simple majority to pass. ACA 13 seeks to change this by requiring any measure attempting to increase the vote percentage for passing local or state ballot measures to meet the same increased percentage requirement. This would impact citizen-led initiatives and not measures referred by the Legislature, creating an uneven playing field.

C.A.R. opposes ACA 13 because:

1. It could raise the cost of buying and owning homes by weakening Proposition 13 protections. ACA 13 wants to undo safeguards set by Proposition 13, which set a 2/3 vote requirement for local governments to raise various homeowner taxes. Passing ACA 13 would make it tougher for homeowners to defend against unjust taxes.

2. It would diminish the power of California's voters. Changing rules solely to avoid certain outcomes goes against the principles of fairness.

3. ACA 13 would exacerbate difficulties for working families to afford homes. A recent report showed that California's housing affordability hit a 16-year low. Higher property taxes could intensify challenges for first-time buyers, hindering their transition from renting to owning. This is crucial for narrowing the state's wealth gap and aiding the diverse population in achieving homeownership and building savings.

PLEASE HELP DEFEAT ACA 13 – CONTACT YOUR ASSEMBLYMEMBER TODAY

Look for C.A.R.’s Red Alert email from realtorparty@car.org

With a subject line that says:
“RED ALERT: Protect Prop 13 and Voter Rights”

Did you know that Paragon Connect now allows you to easily ADD/EDIT listings? This capability was introduced in the most recent major update of Paragon Connect in CRMLS. Paragon Connect functions as an extension of Paragon MLS, tailored for use on mobile phones, tablets, and computers. Notably, Paragon Connect is not a standalone app; it ensures a consistent experience across all your devices.

Simplified Listing Entry with Paragon Connect

Why should you consider using Paragon Connect for your listing entry needs? The interface offers a fresh, modern look while retaining the familiar input fields. Whether you're enthusiastic about leveraging new technology or prefer the convenience of accessing the MLS on-the-go, Paragon Connect accommodates your preferences seamlessly.

Efficiency at Your Fingertips: Partial Entry and Multi-Device Workflow

Curious about starting a listing entry on your computer and finishing it on your phone? With Paragon Connect, this transition is effortless. In the Connect interface, a partial listing is indicated as "Unavailable," while existing editable listings are marked as "Available." This streamlined process enables smooth movement between devices without missing a beat.

Paragon Connect presents a simplified and unified approach to listing entry. Its user-friendly design and compatibility across various devices make it an invaluable tool for real estate professionals looking to enhance their listing management practices.

How do I get to Paragon Connect? In the new CRMLS Dashboard, on the right hand side, click on the plus sign and add it to your Dash for next time.

Learn more about the Add/Edit ability of Paragon Connect and gain the ability to do business on your mobile device. Check out the video below.

Interest rates are still on the rise, along with the price of homes in San Diego County and statewide, according to the latest home sales and price report for July 2023 from the California Association of REALTORS® (C.A.R.).

In San Diego, the median sales price for an existing, single-family detached home in July 2023 increased to $969,020, an increase of 1.1 percent from June 2023’s median price of $958,250. In a year-over-year comparison with July 2022, the median price was $930,000, an increase of 4.2 percent.

Statewide, the median home price exceeded $800,000 in July 2023 for the fourth straight month. It was the first year-over-year gain since October 2022, nine months ago.

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

The statewide median home price dipped 0.7 percent from June 2023’s $838,260 to $832,345 in July 2023, and it was up 0.2 percent from a revised $830,870 a year ago in July 2022.

As the housing market transitions into the off-peak homebuying season in the coming months, the statewide median price will likely soften as market competition cools. Home prices, nevertheless, should continue to improve from last year as tight housing supply conditions persist.

Meanwhile, higher interest rates are reducing the number of home sales. Year-to-date statewide home sales were down 30.3 percent in July 2023.

Sales of existing, single-family homes in San Diego in July 2023 declined by 1.3 percent in a month-over-month comparison with June 2023, while the figures was 4.9 percent lower in a year-over-year comparison with June 2022.

Statewide, the sales pace for existing, single-family homes in July 2023 was down 3.0 percent, compared to June 2023, and down by 9 percent from a year ago in July 2022.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 269,180 in July 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 July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

July 2023’s sales pace was down on a monthly basis from 277,490 in June 2023, and down 9.0 percent from a year ago in June 2022, when a revised 295,770 homes were sold on an annualized basis.

Sales of existing single-family homes in California remained below the 300,000-unit pace for the 10th consecutive month. The yearly drop was the smallest since April 2022 and marked the first time in more than a year that sales dropped by less than 10 percent from the previous year. However, the small decline was due partly to a lower sales base last July, when sales dropped below 300,000 for the first time in over two years.

“Despite slowing home sales in the past couple of months, housing demand remains resilient, and the market continues to be competitive,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “Many in the market aspire to become homeowners and are actively looking to buy, but the shortage of homes for sale and elevated mortgage rates remain challenging headwinds for them.”

“Housing supply continued to be tight in California as rates remain well above levels observed in 2020-2021, when homeowners locked in their long-term mortgages,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While home sales have been negatively impacted by the shortage of homes for sale during this year’s homebuying season, home prices continue to stabilize and have provided consumers with some confidence that market conditions are still solid. Interest rates should moderate later this year if inflation eases further, and home sales could see some improvement in the winter season.”

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

• At the regional level for Southern California, year-over-year sales declined in July 2023 by 14 percent.
  
  
• At the regional level for Southern California, median home prices in July 2023 increased from a year ago by 2.7 percent.
  
  
• Home prices across the state stabilized somewhat in July 2023, as fewer counties (27) posting year-over-year median price declines in July 2023, compared with 37 counties in June 2022.
  
  
• Housing inventory in California climbed month-over-month in July for the second straight month after inching up in June but continued to trail last year’s level as a lack of new listings remained the norm.
  
  
• The statewide unsold inventory in July 2023 increased 13.4 percent compared to June 2023, but dropped sharply by 19.4 percent on a year-over-year comparison with June 2022.
  
  July 2023 County Unsold Inventory and Days on Market
  (Regional and condo sales data not seasonally adjusted)
  
  
  
• Active listings at the state level in July 2023 fell more than 30 percent from a year ago in July 2022. It was the largest annual decline since May 2021.
  
  
• With mortgage rates expected to remain high in August and September, the “lock-in effect” may prevent any meaningful improvement in supply conditions for the remainder of the third quarter, as homeowners are reluctant to sell their homes and buy something new due to the financial shock of trading their historically low mortgage rates for a higher interest rate with their new property.
  
  
• Unsold inventory declined in all price ranges in July 2023 in year-over-year comparisons from a year ago in July 2022. The mid-price segment of $750,000-$999,000 dipped the most by 25.8 percent in a year-over-year comparison. The $500,000-$749,000 price range, with a decrease of 20 percent, posted the second largest decline from last year, followed by the sub-$500,000 at 18.8 percent lower and the $1 million price segment at 16.1 percent lower.
  
  
• Statewide unsold inventory on a monthly basis was at 2.5 months in July 2023, compared to 2.2 months in June 2023 and 3.1 months in July 2022.
  
  
• In San Diego in July 2023, the inventory of available homes for sale was 2.0 months, which was the same figure for June 2023. In July 2022, the figure was 3.1 months. Other unsold inventory figures in 2023 in San Diego included 1.7 months in May, 1.9 months in April, 1.7 months in March, 2.3 months in February and 2.7 months in January. 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.
  
  
• Statewide, the median number of days it took to sell a California single-family home was 16 days in July 2023, compared to 15 days in June 2023, 17 days in May 2023, 20 days in April 2023 and 18 days a year ago in July 2022.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 12 days in July 2023, compared to 11 days in June 2023, 12 days in May 2023 and a revised 13.5 days a year ago in July 2022. Other median-time-on-the-market figures for San Diego in 2023 include 12 days in April, 15 days in March, 17 days in February and 26 days in January. The median represents a time when half the homes sell above it and half below it.
  
  
• The statewide, sales-price-to-list-price ratio this year was at 100 percent in July and June, May and April, 99.1 percent in March, 97.7 percent in February and 96.5 percent in January. A year ago, in July 2022, the ratio was 100.0 percent. 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 6.84 percent in July 2023, up from 5.41 percent in July 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Find all your REcenterhub resources gathered together
Access your webinar recording and other helpful guides

Adjusting to change – even change for the better – can take a little time. As you get familiar with your new REcenterhub dashboard and all its features, here is a collection of the resources you can consult for guidance:

• REcenterhub webinar recording
  • Recording of one of our comprehensive live webinars
• REcenterhub Resource Center
  • Dedicated collection of crucial REcenterhub resources
• REcenterhub User Guide
  • Detailed guide to several main REcenterhub features
• How to Log In
  • Step-by-step instructions for logging into the dashboard
• REcenterhub FAQs
  • Answers to commonly asked questions
• REcenterhub Info Flyer
  • A one-sheet overview of REcenterhub's benefits

Starting this week, active registered voters in the Fourth Supervisorial District are receiving a ballot in the mail to vote in the special primary election to fill the vacant seat on the County Board of Supervisors.  PSAR received requests to review the candidates in the race to fill this seat, so the Government Affairs Committee interviewed each of the candidates about issues that impact REALTORS® and their businesses.   

PSAR extends its thanks to each of the candidates for taking the time to discuss our issues with the committee.  Janessa Goldbeck demonstrated an exceptional knowledge and understanding of the issues facing our industry, as well as a pathway to addressing those issues.  For these reasons, PSAR's Government Affairs Committee and Board of Directors voted to endorse Janessa Goldbeck for County Supervisor for District 4. Committee members lauded her thoughtful pro real estate responses: “We found Janessa to be current on rental issues, affordable housing shortages and homelessness. She expressed not only concern, but offered ideas addressing these issues, which are at the forefront of our industry's priorities.”  

PSAR is a non-partisan organization. PSAR Members and their clients run the gamut of the political spectrum. As REALTORS®, we unite to protect private property rights and promote homeownership. Our committee and leadership are driven by these goals.  

Click here for additional information on the special primary election.

Elevated interest rates and a shortage of homes for sale continued to dictate the California housing market in June 2023, with the year-over-year price decline at its lowest rate this year, according to the latest home sales and price report from the California Association of REALTORS® (C.A.R.).

For June 2023, in San Diego, home sales were lower and home prices were higher in month-over-month comparisons between June 2023 and May 2023.

Sales of existing, single-family homes in San Diego County in June 2023 declined by 6.6 percent in a month-over-month comparison with May 2023, while the figure was 24.3 percent lower in a year-over-year comparison with June 2022.

Meanwhile, the median sales price for an existing, single-family detached home in San Diego County increased in June 2023 to $958,250, compared to $935,000 in May 2023, a 2.5 percent difference. In a year-over-year comparison, the median price was $950,000 in June 2022, a 0.9 percent difference.

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

Statewide, the sales pace for existing, single-family homes in June 2023 was down by 4.1 percent, compared to May 2023, when 289,460 homes were sold, and it was down by 19.7 percent from June 2022, when a revised 345,760 homes were sold on an annualized basis.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 277,490 in June, 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 June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Sales of existing single-family homes in California remained below the 300,000-unit pace for the ninth consecutive month. The yearly drop was the smallest since May 2022 and marked the first time in a year that sales dropped by less than 20 percent from a year ago.

However, the smaller decline was due primarily to weaker sales last June, when sales dropped below 350,000 for the first time in two years.

Year-to-date statewide home sales were down 32.9 percent in June 2023.

California’s median home price exceeded $800,000 in June for the third straight month, edging up 0.3 percent from $836,110 in May 2023 to $838,260 in June 2023. The statewide median price continued to rise and reached the highest level in 10 months. The tight housing supply and more high-end homes being sold relative to prior months continued to put upward pressure on prices.

Despite the improvement from early 2023, the median home price in California in June 2023 dipped 2.4 percent on a year-over-year basis for the eighth consecutive month from $858,800 in June 2022.

While the downward movement in home prices appears to indicate that housing values are stabilizing, more dips in the median price are expected in the coming months as rates will likely remain elevated for most, if not the entire third quarter of 2023. Higher home prices are a warning signal that housing affordability could remain low in the second half of the year.

“California’s housing market has improved since the winter and appears to have found its footing as sales declined at the slowest pace in over a year,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “Despite elevated interest rates, the demand for housing continues to outpace the availability of homes for sale, as buyers slowly adapt to the new normal under the current housing market conditions.”

“Buyer demand appears to have stabilized after rates doubled last year, though rates could still move higher in the coming months,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “As inflation finally subsides later this year, the market could see some improvement as rates and supply conditions start turning around.”

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

• At the regional level, year-over-year sales declined in June 2023 in the Southern California region by 19.4 percent.
  
  
• At the regional level, median home prices in June 2023 dropped from a year ago in the Southern California region by 1.8 percent.
  
  
• Housing inventory in California inched up in June 2023, compared to May 2023, but it was lower than in June 2022, as tight housing supply continues to be the norm. With mortgage rates expected to be high in the next couple of months, California may not see any meaningful improvement in its housing inventory throughout the third quarter.
  
  
• The statewide unsold inventory in June 2023 increased 4.8 percent, compared to May 2023, but dropped 8.3 percent from a year ago in June 2022.
  
  
• Active listings statewide for June 2023 fell sharply by 34 percent, compared to June 2022. It was the largest year-over-year decline since May 2021.
  
  
• Unsold inventory in June 2023 declined in several price ranges from a year ago in June 2022. The mid-price segment of $750,000-$999,000 recorded the biggest year-over-year decline in unsold inventory of 16 percent, followed by the $500,000-$749,000 price range (-12.5 percent) and the sub-$500,000 (-11.5 percent). Unsold inventory in June 2023 for homes priced at $1 million and higher was unchanged in month-over-month and year-over-year comparisons.
  
  

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

• Statewide unsold inventory on a monthly basis increased to 2.2 months, compared to 2.1 months for May 2023 and 2.4 months for May 2022.
  
  
• In San Diego, in June 2023, the inventory of available homes for sale was 2.0 months, compared to 1.7 months for May 2023 and 2.4 months for May 2022. Other unsold inventory figures in 2023 in San Diego included 1.7 months in May, 1.9 months in April, 1.7 months in March, 2.3 months in February and 2.7 months in January. 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.
  
  
• Statewide, the median number of days it took to sell a California single-family home was 15 days in June 2023, compared to 17 days in May 2023, 20 days in April 2023 and 14 days a year ago in June 2022.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 11 days in June 2023, compared to 12 days in May 2023 and 11 days in June 2022. Other median-time-on-the-market figures in San Diego in 2023 include 12 days in May and April, 15 days in March, 17 days in February and 26 days in January. The median represents a time when half the homes sell above it and half below it.
  
  
• The statewide, sales-price-to-list-price ratio was at 100 percent in June, May and April 2023, 99.1 percent in March 2023, 97.7 percent in February 2023 and 96.5 percent in January 2023. A year ago, in June 2022, the ratio was 101.3 percent. 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 6.71 percent in June, up from 5.52 percent in June 2022, according to Freddie Mac.