While California’s statewide housing market lost momentum in March after lower home sales, the sales pace did not slow down in San Diego County with a jump of more than 15 percent, plus a return to median home prices exceeding $1 million, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Statewide, the sales pace for existing, single-family homes fell 7.8 percent from February 2024 to March 2024, and a drop of 4.4 percent from March 2024 to March 2023. March was the first time in three months for statewide home sales to decline on a year-over-year basis.

Also, the statewide sales pace remained below the 300,000-threshold for the 18th consecutive month. On a year-to-date basis, California home sales still exceeded the level experienced in first-quarter 2023 by 0.7 percent, but the gain continued to shrink in March. Year-to-date statewide homes sales were up 0.7 percent.

In contrast, home sales in San Diego increased 15.7 percent in a month-over-month comparison between March 2024 and February 2024. However, in a year-over-year comparison between March 2024 and March 2023, the sales pace was lower, a decrease of 7.1 percent.

Similarly, San Diego home prices kept moving higher. The median sales price of an existing, single-family detached home in March 2024 was $1,020,000, a 4.1 percent difference from February 2024, when the median price was $980,000. A year ago, in March 2023, the median price for a San Diego home was $915,000, a difference of 11.5 percent with March 2024.

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

Home prices on a statewide basis also have been higher. The median price of an existing, single-family home in California was $854,490 in March 2024, compared to $806,490 in February 2024, and $793,260 in March 2023.

The year-over-year gain was the ninth straight month of annual price increases for the Golden State. March marked the 11th time in the last 12 months that the median price for an existing single-family home was above $800,000.

Sales of homes priced at or above $1 million dollars in California have been holding up better than their more affordable counterparts in the last few months.

The $1 million-and-higher market segment continued to grow year-over-year in March 2024 by a decent clip (9.9 percent), while the sub-$500,000 segment declined again modestly (-2.4 percent). The change in the mix of sales continued to provide upward support to the statewide median price and was partly responsible for the solid increase in year-over-year growth rate at the end of the first quarter.

“While home sales lost momentum in March, the housing market remains competitive as we’re seeing the statewide median home price reaching the highest level in seven months, and homes selling quicker than last year,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®.  “On the supply side, the market continues to improve with an increasing number of properties being listed on the market as more sellers begin to accept the new normal.”

“With mortgage rates reaching the highest levels since mid-November 2023, the housing market struggled to build on the momentum exhibited in the first two months of this year,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. ”While sales could be hindered by higher rates in the coming weeks, the uptick in recent months suggests that we could see a bounce back in housing activity when the market digests the latest inflation report.”

 

Other key points from C.A.R.’s March 2024 resale housing report include:

 

• Home sales in most major regions of the state declined on a year-over-year basis in March 2024, including 7.8 percent in Southern California.
  
  
• At the regional level, all major regions registered an annual increase in their median price from a year ago, including a double-digit price gain of 11.1 percent in Southern California.
  
  
• Unsold inventory statewide decreased 13.3 percent in March 2024 on a month-over-month basis but increased from March 2023 by 23.8 percent. The index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, dipped from 3.0 months in February 2024 to 2.6 months in March 2023. The index was 2.1 months in March 2023.
  
  

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

• Active listings at the state level in March 2024 increased on a year-over year basis for the second consecutive month, and the increase was the largest in 13 months. It’s an encouraging sign that housing supply could be heading in the right direction as the market enters the spring home-buying season. However, mortgage rates could reach a four-month-high in coming weeks and rates are expected to remain elevated longer than previously anticipated, which could delay some potential sellers in putting their house up on the market.
  
  
• New active listings at the state level increased from a year ago for the third consecutive month by double digits as more sellers listed their homes on the market ahead of the spring home-buying season. The jump in new housing supply, along with a modest slowdown in housing demand last month, contributed to an improvement in the overall active listings.
  
  
• The median number of days it took to sell a California single-family home was 19 days in March 2024, 22 days in February 2024, 32 days in January 2024 and 24 days in March 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 12 days in March, 13 days in February 2024, 21 days in January 2024 and 15 days in March 2023. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100 percent in March 2024 and February 2024, 98.9 percent in January 2024 and 99.1 percent in  March 2023.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.82 percent in March, up from 6.54 percent in March 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Despite a recent uptick in mortgage interest rates, California’s housing market continued to demonstrate resiliency in February 2024, reaching sales levels not seen since September 2022, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

In San Diego County, homes sales and home prices outpaced statewide levels with greater margins.

Sales of existing, single-family homes in San Diego County increased 20.9 percent in a month-over-month comparison between February 2024 and January 2024. In a year-over-year comparison between February 2024 and February 2023, the sales pace also was higher, an increase of 8.1 percent.

Similarly, statewide home sales for February 2024 increased 12.8 percent in a month-over-month comparison and 1.3 percent year-over-year. The monthly sales increase was the second straight month of double-digit gains for California. It was also the second consecutive month of year-over-year gains.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 290,020 in February, 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 2024 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 remained below the 300,000 threshold for the 17th consecutive month. While it is likely that sales will stay below this level in the first quarter of 2024, statewide home sales on a year-to-date basis remained positive with an increase of 3.4 percent, suggesting a better spring home-buying season than that experienced last year.

Meanwhile, home prices continued to rise in San Diego County in February 2024.

The median sales price of an existing, single-family detached home in San Diego County in February 2024 was $980,000, a 5.9 percent difference from January 2024, when the median was $925,000. A year ago, in February 2023, the median price for a San Diego County home was $878,000, a difference of 11.6 percent with February 2024.

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

Home prices on a statewide basis also increased, but at smaller margins compared to San Diego. The median price of an existing, single-family home in California was $806,490 in February 2024, a 2.2 percent difference with the statewide median price of $789,480 in January 2024. A year ago, in February 2023, the statewide median home price was $735,300, a difference of 9.7 percent with February 2024.

The near-double-digit, year-over-year gain was the eighth straight month of annual price increases for the Golden State. It was the tenth time in the last 11 months that the median price for an existing single-family home was above $800,000.

With mortgage rates on the uptick since the start of the year and concerns about rates staying elevated for at least the first half of 2024, the housing market could struggle to build on the momentum exhibited in the first two months of this year. However, tight inventory conditions should keep the market highly competitive and provide support for prices.

Moreover, sales of homes priced at or above $1 million have been holding up better in the last few months than more affordable options. The high-end market segment continued to grow year-over-year in February by double digits, while the more affordable segment declined again modestly. The mix of sales toward higher priced homes continued to provide support to the statewide median price and was partly responsible for the strong surge year-over-year price growth rate in February.

“Housing supply conditions in California continued to improve in February with new active listings rising more than 10 percent for the second straight month,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “This is great news for buyers who have been competing for a dearth of homes for sale, and the momentum will hopefully build further as we enter the spring home buying season.”

“Consumers have been feeling more positive about buying and selling since the beginning of the year, as increases in sales activity and home prices are reflected in the latest improvement in optimism,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While the recent upward movement in interest rates may result in more moderate sales in March, we expect homebuyers on the sidelines to reenter the market as the economy slows and rates begin to trend down again in the second quarter.”

 

Other key points from C.A.R.’s February 2024 resale housing report include:

• Home sales in all major regions in the state rose in February 2024, including 7.0 percent in Southern California.
  
  
• At the regional level, home prices increased in February 2024 in all major reasons compared to a year ago, including 10.8 percent in Southern California.
  
  
• The unsold inventory statewide index decreased 6.3 percent in February 2024 on a month-over-month basis, dipping by 3.2 percent from February 2023. The index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, dipped from 3.2 months in January 2024 to 3.0 months in February 2024. The index was 3.1 months in February 2023.
  
  

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

  

• The unsold inventory index of available existing homes for sales in February 2024 in San Diego County was 2.3 months, a figure that was identical to February 2023. The index was 2.6 months in January 2024. 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.
  
  
• Existing active listings at the state level increased on a year-over year basis for the first time in 11 months. February’s increase was the largest in 12 months, an encouraging sign that housing supply could be heading in the right direction as the market approaches the spring home-buying season. However, mortgage rates have increased since the start of the year and are expected to remain elevated, which may cause potential sellers to have second thoughts about listing their house for sale.
  
  
• New active listings in February 2024 at the state level increased from a year ago for the second consecutive month by double digits as more sellers listed their homes on the market ahead of the spring home buying season as mortgage rates dipped at the start of the year. The annual listings increase was the largest since May 2022.
  
  
• The median number of days it took to sell a California single-family home was 22 days in February 2024, 32 days in January 2024 and 35 days in February 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 13 days in February 2024, 21.5 days in January 2024 and 19 days in February 2023. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100 percent in February 2024, 98.9 percent in January 2024 and 97.7 percent in February 2023. In 2023, the statewide, sales-price-to-list-price ratio on a monthly basis was at 99 percent in December, 100 percent in November, October, September, August, July, June, May and April, 99.1 percent in March, 97.7 percent in February and 96.5 percent in January.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.78 percent in February, up from 6.26 percent in February 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Link to:  Location and Direction | Pitch Details | Property Coverage | Agenda | How To Pitch

 

To enter a property for a PSAR pitch session, use this link: "Request Pitch".

Join REALTORS® Trish Nuñez & Karina Souza as they moderate the Central Pitch!

Showcase listings, receive live feedback, network with fellow local agents. Coverage includes Bay Ho, Clairemont,   La Jolla, Linda Vista, Mission Beach, Mission Hills, Morena, Ocean Beach, Pacific Beach, & Point Loma  There's nothing like person-to-person interaction!

PSAR's Central Pitch will deliver these benefits: 

• Live listing Pitch: Promote your listings to a room full of engaged and motivated local agents
• Improve Your Marketing: Gain valuable insights through the interactive Q&A session that will help you market your listings more effectively.
• Network: Meet, mingle, and build important relationships with fellow top-producing agents who can bring qualified buyers to your listings.

Tuesday| March 12th, 2024
9:30 AM - 10:30 AM
...and every Tuesday thereafter at 9:30 AM
There will be coffee and some breakfast nosh items available as well!

 

PSAR Central Office in Clairemont
4340 Genesee Ave, San Diego, Suite 203*

*Located on the second floor. Please enter through the rear entrance of the building. Signage will direct you to the correct room once you reach the office.

Pitch Details

Great listing exposure! The property will be listed in the "pitch email" sent to agents in corresponding areas of the county the evening prior. This email has a consistently high open rate. 

At this time, pitched properties are not required to be held open after the pitch session, but it is encouraged due to the momentum generated at the session.

Here are the pitch guidelines:

• Properties "Coming Soon" and "Active" properties can be pitched. Coming soon properties may not be shown  Here are the rules.

• Only "Active" properties may be part of the broker's open.

• If the listing agent cannot come in and pitch, no need to worry as you can assign another MLS subscriber to make the pitch for you. Make sure to indicate it in the pitch form!

• Cancellations must be received by 12:00 pm the night before via email (pitch@psar.org), or you will be considered a "No Show." No Shows without an email cancellation will be suspended from the Pitch Session for 90 days.

• All MLS subscribers are welcome regardless of association affiliation. Those marketing properties must be licensed subscribers or participants in an MLS.

• PSAR affiliate members are welcome to participate and network. More information is available on sponsoring a pitch session and addressing attendees.

Registration & Questions:

• Call 619-421-7811 or email pitch@psar.org with any questions.

• To enter a property for a PSAR pitch session, use the "Request Pitch" form.

• Pitches MUST be submitted by 3:00 pm the day before the meeting (Monday) to be included.

Coverage Area

Properties in the following zip codes may be included: Bay Ho, Clairemont,   La Jolla, Linda Vista, Mission Beach, Mission Hills, Morena, Ocean Beach, Pacific Beach, Point Loma   (92037, 92103, 92107, 92108, 92110, 92111, 92121, 92122, 92123,92037.)  (Out-of-area pitches are allowed as time permits)

Caravan Tour Number To Come

 

Pitch Agenda

• Host introductions

• We request the attendees to keep mobile phones silent as a courtesy to the pitch speaker

• Introduce this week's sponsor: Pitch session begins: each agent pitches their property (2 minutes each)

• Coming soon properties: agents highlight listings coming soon

• Price changes: agents announce recent price changes

• Additional announcements: relevant industry news/updates

• Upcoming PSAR events and classes

• Reminder of open houses: agents state if they are holding opens after the pitch

Meeting announcements / Market Update

Pitch sessions provide a valuable platform to gain insights from industry experts on current real estate trends, vital updates and announcements for REALTORS® in the county, that could impact their business.

• Meeting announcements: cover any PSAR updates/news

• Market update: provide an overview of the latest market trends and statistic

How to Pitch Your Property

When it's your turn to pitch:

• Walk to the front of the room

• State your name, company, and phone number clearly and slowly

• We will display photos while you provide key property details:

  • Address

  • Property type (e.g. single-family home, condo, etc.)

  • Asking price

  • Brief description

  • Key features and details

  • Why agents should see this property

  • Will you be holding an open house after the pitch session?

• Wrap up the pitch by repeating:

  • Your name

  • Company

  • Phone number (slowly and clearly)

• Allow agents to ask questions after your pitch

• Limit pitch to 2 minutes maximum

Lower mortgage rates at the beginning of this year failed to spark home sales across San Diego County in January 2024, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Sales of existing, single-family homes in San Diego County declined 0.9 percent in a month-over-month comparison between December 2023 and January 2024. In a year-over-year comparison between January 2024 and January 2023, the sales pace was unchanged, a difference of 0.0 percent.

In contrast, statewide home sales for January 2024 increased 14.4 percent in a month-over-month comparison and 5.9 percent year-over-year. It was the highest level for statewide existing home sales in six months.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 256,160 in January 2024, 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 2024 if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

While the increase in January 2024 was the first year-over-year sales gain in 31 months, the sales pace stayed below the 300,000-unit threshold for the 16th straight month and will likely stay below that level in the first quarter of 2024. With interest rates moderating sharply at the end of 2023 and leveling off nearly 100 basis points below the most recent peak, home sales should continue to grow year-over-year in February, but the improvement will be modest.

Meanwhile, home prices continued to rise in San Diego County in January 2024. The median sales price of an existing, single-family detached home in San Diego County in January 2024 was $925,000, a 1.5 percent difference from December 2023, when the median price was $911,500. A year ago, in January 2023, the median home sales price was $824,900, a difference of 12.1 percent with January 2024.

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

However, in contrast, on a statewide basis, home prices declined in month-over-month and year-over-year comparisons. The median price of an existing, single-family home in California was $788,940 in January 2024, a 3.8 percent drop from the $819,740 figure in December 2023. A year ago, in January 2023, the statewide median home price was $751,700, a difference of 5.0 percent with January 2024.

It was the seventh straight month for annual price gains on a statewide basis. The monthly price decline was due primarily to seasonal factors, and the January figure marked the first time in ten months that the median price dropped below the $800,000 benchmark. With mortgage rates softening since mid-October, home prices will likely maintain their upward momentum, and the market should continue to observe a mid- to single-digit, year-over-year growth rate in California’s median price in at least the early part of 2024.

“It’s encouraging to see California’s housing market kick off the year with positive sales growth in January,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “While we’ll likely experience some ups and downs in home sales in the coming months as rates continue to fluctuate, the lending environment is expected to be more favorable in 2024, so the market should see more pent-up demand translate into sales.”

“The increase in new active listings for the first time in 19 months was great news for the California housing market,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “With rates climbing back up to a two-month high earlier this week due to the latest inflation concerns, potential home sellers could hit the pause button on listing their house on the market and wait until rates begin to ease again. In general, rates are expected to decline later this year, and available inventory should slowly improve throughout 2024.”    

Other key points from C.A.R.’s January 2024 resale housing report include:

• Home sales in all major regions in the state rose in January 2024 on a year-over-year basis, including 2.2 percent in Southern California.
  
  
• At the regional level, home prices increased in January 2024 in all major regions from a year ago in January 2023, including 7.0 percent in Southern California
  
  
• Unsold inventory statewide index increased 28 percent on a month-over-month basis and declined by 8.6 percent from January 2023. The index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate declined from 2.5 months in December 2023, to 3.2 months in January 2024. The index was 3.5 months in January 2023.

 

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

• In San Diego County in January 2024, the inventory of available homes for sale was 2.6 months, compared to 2.2 months in December 2023, and 2.7 months a year ago in January 2023. Other unsold inventory figures on a monthly basis in 2023 for San Diego County included 2.5 months in November and September, 1.9 months in August, 2.0 months in July, 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.

•  Existing active listings at the state level dipped again on a year-over-year basis for the 10th straight month in January 2024. However, the decline was small, a sign that active listings might be heading in the right direction as the market approaches the spring home-buying season. Still, the recent jump in mortgage rates the past couple of weeks could cause potential sellers to reconsider listing their homes for sale.
  
  
•  New active listings at the state level increased from a year ago for the first time in 19 months, and the annual increase was the largest since May 2022. The jump in new active listings contributed to an improvement in overall active listings, and the sharp drop in rates at the end of 2023 was likely the motivating factor that convinced more homeowners to sell their homes.
  
  
• The median number of days it took to sell a California single-family home was 32 days in January 2024, 26 days in December 2023, and 39 days in January 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 21.5 days in January 2024, compared to 18 days in December 2023, and 32 days in January 2023. Other median-time-on-the-market figures on a monthly basis for San Diego in 2023 include 15 days in November, 14 days in October and September, 13 days in August, 12 days in July, 11 days in June, 12 days in May and April, 15 days in March and 17 days in February. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 98.9 percent in January 2024, 99 percent in December 2023 and 96.5 percent in January 2023.The statewide, sales-price-to-list-price ratio on a monthly basis in 2023 was at 100 percent in November, October, September, August, July, June, May and April, 99.1 percent in March, 97.7 percent in February and 96.5 percent in January. 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 6.64 percent in January, up from 6.27 percent in January 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Mirroring a statewide trend, both home prices and home sales declined across San Diego County in December 2023, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

The median sales price of an existing single-family detached home in San Diego County in December 2023 was $911,500, which was a 4.3 percent difference from November 2023, when the median price was $952,000. A year ago, in December 2022, the median home sales price was $850,000, a difference of 7.2 percent with December 2023.

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

Also, in December 2023, sales of existing, single-family homes in San Diego County declined by 5.1 percent in a month-over-month comparison with November 2023. In a year-over-year comparison between December 2023 and December 2022, the sales pace was 17.3 percent lower.

Statewide, the numbers for home sales and home prices in December 2023 showed a stagnant California housing market.

For the 2023 year as a whole, the state recorded an annual sales level of 257,630 for 2023, a decline of 24.8 percent from the revised sales level of 342,530 reported at the end of 2022. The annual sales decline comparing 2023 with 2022 was the steepest decline in existing home sales in California since 2007.

Statewide, December 2023 home sales remained near the 16-year low reached in November 2023.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 224,000 in December 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 December 2023 pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The December 2023 sales pace was essentially unchanged from the revised 223,940 homes sold in November 2023 and was down 7.1 percent from a year ago in December 2022, when a revised 241,070 homes were sold on an annualized basis.

Sales of existing single-family homes in California have been below the 300,000 threshold since September 2022, and will likely stay below that level throughout the first quarter of 2024.

While the deceleration in the year-over-year loss was due primarily to the low level of pending sales recorded a year ago, the slowdown could be a sign that the market is turning the corner, especially since rates in the past couple of weeks have remained well-below the recent peak recorded in late October 2023.

Statewide, the median price of an existing single-family home was $819,740 in December 2023, down slightly by 0.3 percent from $822,200 in November 2023, but above the $770,490 price, a difference of 6.4 percent, posted in December 2022. It was the largest year-over-year gain since May 2022.

With mortgage rates softening since mid-October, home prices will likely maintain their upward momentum, and the market should continue to observe a mid- to single-digit, year-over-year growth rate in California’s median price during the early part of 2024.

For the 2023 year, California’s median home price slipped 0.6 percent to $813,980 from 2022’s $818,900 figure, but it is expected to climb to $860,300 in 2024.

“The housing market had a tough year in 2023 as a shortage of homes for sale and high costs of borrowing continued to have a negative impact on housing inventory and demand,” said 2024 C.A.R. President Melanie Barker, a Yosemite REALTOR®. “With mortgage rates expected to come down in the next 12 months, home sales will bounce back as buyers and sellers return to a more favorable housing market. Home prices should see a moderate increase in 2024 as well.”

“Easing inflationary pressure and a soft economic outlook suggest that we will see some interest rate cuts in the upcoming year, which bode well for a housing market recovery,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “With rates declining to a 7-month low in late 2023, Americans are feeling more positive about the market, and we could begin to see some increase in market activity at the start of the year. The improvement is expected to be gradual as tight housing supply will remain the norm in 2024.”  

 

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

• Home sales in all major regions in the state dipped in December 2023 on a year-over-year basis, including 6.2 percent in Southern California.
   
• At the regional level, home prices increased in December 2023 in all major regions from a year ago in December 2022, including 6.3 percent in Southern California.
  
  
• The unsold inventory statewide decreased 16.7 percent on a month-over-month basis and dipped slightly from December 2022 by -3.8 percent. The index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate declined from 3.0 months in November to 2.5 months in December. The index was 2.6 months in December 2022.
  

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

• In San Diego County in December 2023, the inventory of available homes for sale was 2.2 months, compared to 2.5 months in November 2023 and 2.2 months in December 2022. Other unsold inventory figures on a monthly basis in 2023 for San Diego County included 2.5 months in November and September, 1.9 months in August, 2.0 months in July, 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.
  
  
• New active listings at the state level dipped again from a year ago for the 18th consecutive month, but the annual decline remained below 3 percent for the second month in a row. With mortgage rates dropping at the end of 2023, sliding back to the lowest level since early August, the market could see a slight uptick in the number of for-sale properties being listed for sale, as we kick-off the New Year.
  
  
• The median number of days it took to sell a California single-family home was 26 days in December 2023, 21 days in November 2023 and 33 days in December 2022.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 18 days in December 2023, compared to 15 days in November 2023 and 23 days in December 2022. Other median-time-on-the-market figures on a monthly basis for San Diego in 2023 include 14 days in October and September, 13 days in August, 12 days in July, 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 the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 99 percent in December 2023 and 96.1 percent in December 2022.
  
  
• The statewide, sales-price-to-list-price ratio on a monthly basis in 2023 was at 100 percent in November, October, September, August, July, June, May and April, 99.1 percent in March, 97.7 percent in February and 96.5 percent in January. 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 6.82 percent in December, up from 6.36 percent in December 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

California home sales in November 2023 registered the biggest monthly decline in the past year and dropped to the lowest level since the Great Recession, 16 years ago, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).  Elevated borrowing costs were blamed for the low home sales statewide.

In San Diego County, sales of existing, single-family homes in November 2023 decreased by 16.9 percent in a month-over-month comparison with October 2023. The sales pace was 12.2 percent lower in a year-over-year comparison with November 2022.

Also, in San Diego County in November 2023, the median home sales price for an existing, single-family detached home was $952,000, which was a 1.7 percent difference from October 2023, when the median price was $936,250. A year ago, in November 2022, the median home sales price $865,000, a difference of 10.1 percent with November 2023.

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

Statewide, the numbers for home sales and home prices in November 2023 showed a suppressed California housing market.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 223,940 homes sold in November 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 November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The statewide sales pace in November 2023 was down 7.4 percent on a monthly basis compared to October 2023, when 241,770 homes were sold, and down 5.8 percent from a year ago in November 2022, when a revised 237,730 homes were sold on an annualized basis.

Sales of existing single-family homes in California remained below the 250,000-unit pace for the third consecutive month. The annual decline was the 29th straight drop, but the decline was the smallest in the last 20 months.

Year-to-date statewide home sales were down 25.9 percent in November 2023.

Median home prices on a statewide basis took at step backwards in November 2023, compared to the previous month, but rose in a year-over-year comparison for the fifth straight month. The year-over-year price gain was the largest in 18 months.

California’s statewide median price decreased 2.2 percent from October’s $840,360 to $822,200 in November 2023, and rose 6.2 percent from a revised $774,150 recorded a year ago in November 2022. The median represents a price where half of the total number of homes sold above it and half below.

The statewide monthly price decline was the largest in 10 months but was smaller than the October-to-November average price adjustment of minus 2.5 percent observed over the past five years.

“Elevated mortgage interest rates and a persistent shortage of homes for sale hindered home sales in November,” said 2024 C.A.R. President Melanie Barker, a Yosemite REALTOR®. “With mortgage rates dropping to the lowest level in four months in recent weeks and the Federal Reserve indicating it plans to cut rates more than previously anticipated in 2024, more prospective homebuyers could reenter the market early next year.”

“While sales have been weak for the past several months, a tight supply of homes for sale is keeping home prices from falling,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “Going into 2024, the recent decline in mortgage rates, along with the upward momentum in home prices, could motivate more would-be sellers to list their homes for sale in the spring home-buying season.”

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

• At the regional level for Southern California, year-over-year sales declined in November 2023 by 5.6 percent. In October 2023, the figure was 7.4 percent.
  
  
• At the regional level for Southern California, median home prices in November 2023 increased from a year ago by 9.9 percent. It was the biggest year-over-year gain of any the statewide regions tracked by C.A.R. In October 2023, the increase was 6.5 percent.
  
  
• Housing inventory improved in November 2023, compared to October 2023. However, the improvement was due mostly to the sales decline rather than an increase in active listings.
  
  
• 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, increased 11.1 percent in November 2023 on a month-over-month basis to 3.0 months, compared to October 2023 at 2.7 months, but fell below last year’s level by 6.3 percent to 3.2 months in November 2022.
  
  
• In San Diego County in November 2023, the inventory of available inventory of homes for sale was 2.5 months, compared to 2.3 months in October 2023 and 2.9 months in November 2022. Other unsold inventory figures on a monthly basis in 2023 in San Diego included 2.5 months in September, 1.9 months in August, 2.0 months in July, 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.

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

• Active listings at the state level dipped again in November 2023 on a year-over year basis for the eighth straight month. The decline in each of the last seven months all registered more than 10 percent year-over-year.

• The median number of days it took to sell a California single-family home was 21 days in November 2023 and 29 days in November 2022.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 15 days in November 2023, compared to 14 days in October 2023 and 22 days in November 2022. Other median-time-on-the-market figures on a monthly basis for San Diego in 2023 include 14 days in September, 13 days in August, 12 days in July, 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.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100 percent in November 2023 and 96.7 percent in November 2022.
  
  
• The statewide, sales-price-to-list-price ratio on a monthly basis in 2023 was at 100 percent in November, October, 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 November 2022, the ratio was 96.7 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 7.44 percent in November 2023, up from 6.81 percent in November 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Home sales remained muted in October 2023, as housing inventory continued to be tight and elevated interest rates kept homebuyers and sellers on the sidelines, according to the latest home sales and price report from the California Association of Realtors (C.A.R.). 

In San Diego County, sales of existing, single-family homes in October 2023 increased 5.7 percent in a month-over-month comparison with September 2023, while the sales pace was 6.4 percent lower in a year-over-year comparison with October 2022.

Also in San Diego County, the median home sales price for an existing, single-family detached home in October 2023 was $936,250, which was a 3.8 percent dip from September 2023, when the price was $973,100. In addition, the median home sales price a year ago in October 2022 was $860,000, a 8.9 percent difference with October 2023.

Statewide, the numbers for home sales and home prices in October 2023 revealed a similar narrative.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 241,770 homes sold in October 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 October 2023 pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The statewide sales pace in October 2023 was up 0.3 percent on a monthly basis compared to September 2023, when 240,940 homes were sold, and down 11.9 percent from a year ago in October 2022, when 274,410 homes were sold on an annualized basis.

Sales of existing single-family homes in California remained below the 250,000-unit pace for the second consecutive month. The annual decline was the 28th straight drop, but the decline was the smallest in the last four months.

Year-to-date statewide home sales were down 27.2 percent in October 2023.

Home prices on a statewide basis rose for the fourth straight month in a year-over-year comparison, and the median price was the largest year-over-year gain in 17 months.

Statewide, in October 2023, the median price was $840,360, which was 0.4 percent lower than the September 2023 figure of $843,340, and 5.3 percent lower than the revised October 2022 figure of $798,140. The median represents a price where half of the total number of homes sold above it and half below.

While October’s median price took a step back from the month prior, the month-to-month decline was smaller than the long-run September-to-October price adjustment of -1.5 percent observed in the last 44 years.

Prices are expected to level off over the next couple of months, following traditional seasonal patterns. Positive year-over-year price growth should remain throughout the rest of the year as housing supply is projected to be tight in the coming months.

“A sizable jump in interest rates kept home sales constrained in October and will likely hamper home sales for the remainder of the year,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®. “Despite rates remaining elevated, many other factors have swung in favor of buyers recently including more properties staying on the market longer before selling and fewer homes selling over list price, which could motivate more sellers to offer concessions.”

“With the Federal Reserve pausing rate hikes at the last Federal Open Market Committee meeting and recent economic news pointing to a slowing economy, mortgage rates have been coming down in recent weeks,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “If inflation continues to cool, we could see more improvement in mortgage rates than the Fed is currently projecting for next year, which would alleviate some pressure on both the buy and sell sides of the housing market in 2024.”

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

• At the regional level for Southern California, year-over-year sales declined in October 2023 by 7.4 percent. In September, the figure was 21.7 percent. In August 2023, the figure was 13.9 percent.
  
  
• At the regional level for Southern California, median home prices in October increased from a year ago by 6.5 percent. In September the figure was 4.7 percent. In August, the figure was 4.4 percent.
  
  

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

• Housing supply in California continued to shrink from a year ago in October 2023 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 2.7 months in October 2023, 2.8 months in September 2023, and 3.1 months in October 2022.
  
  
• In San Diego in October 2023, the inventory of available homes for sale was 2.3 months, compared to 2.5 months in September and 3.0 months in October 2022. Other unsold inventory figures on a monthly basis in 2023 in San Diego included 1.9 months in August, 2.0 months in July, 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.

 

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

• Housing inventory in California slid back in October from the prior month as the market continued to grapple with high mortgage rates. The statewide unsold inventory index decreased -3.6 percent on a month-over-month basis and fell below last October by -12.9 percent.
  
  
• Active listings at the state level continued to dip on a year-over year basis for seven straight months, and a further decline in each of the last six months all registered more than 20 percent in year-over-year comparisons.
  
  
• New active listings at the state level dropped from a year ago for the 16th consecutive month, but the rate of decline continued to decelerate. In fact, newly added for-sale properties dipped less than 10 percent for the first time in 12 months. The smaller year-over-year rate of decline was partly due to low-base effects though, as new active listings in October 2022 also recorded a sizeable drop from the prior year. 
  
  
• The median number of days it took to sell a California single-family home was 20 days in October and 28 days in October 2022.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 14 days in October and September 2023, compared to 22 days in October 2022.Other median-time-on-the-market figures on a monthly basis for San Diego in 2023 include 13 days in August, 12 days in July, 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 October, 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 October 2022, the ratio was 97.3 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 7.62 percent in October, up from 6.90 percent in October 2022, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.
  
  
• Mortgage rates have been coming down in recent weeks as the Fed paused rate hikes at the latest meeting and recent economic news pointed to a slowing economy. Further decline in mortgage rates should alleviate pressures on both the supply side and the demand side of the housing market in the coming months.

The National Association of REALTORS® released its 2023 Profile of Home Buyers and Sellers this morning, garnering coverage in a wide range of national media outlets, including CNN , Bloomberg and The Washington Post.

For most home buyers, the purchase of real estate is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. This annual survey was conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers. Download Highlights (PDF 7 MB) | Get the Full Report(link is external) | News Release

Read additional highlights of the report in REALTOR® Magazine’s “12 Trends That Explain Your Clients’ Real Estate Journey.”

The annual report, which NAR has been conducting since 1981, covers demographics, preferences, and experiences of recent buyers and sellers across the United States. Data was collected from a nationally representative sample of home buyers who purchased a primary residence in the 12-month period between July 2022 and June 2023.

This year’s report shows that reliance on real estate professionals remains strong. Although 100% of respondents said they used the Internet in the home search process, a vast majority—89% of both buyers and sellers—said they worked with a real estate professional on their sale or purchase. Only 5% of sellers cited the “agent’s commission” as an important factor in choosing their agent: The reputation of the agent, whether the agent was “honest and trustworthy,” and knowledge of the neighborhood ranked as the most important factors.

Household annual income among buyers was 22% higher than last year, an indication that high sales prices and rising interest rates have eroded lower-income households’ ability to purchase a home. Among buyers who financed their purchase, the median down payment amount was also up. In this year’s report, it was 8% for first-time buyers, 19% for repeat buyers, and 15% for all buyers.

After several years of losing share in the homebuying market, first-time buyers are making headway. They made up 32% of the market, according to this year’s report—still below the historical rate of 38% but notably higher than last year’s rate of 26%.

As in past years, buyers and sellers report satisfaction with the service provided by their real estate professionals. Ninety percent of buyers said they would definitely (75%) or probably (15%) use their agent again or recommend their agent to others. Eighty-seven percent of sellers said they would definitely (73%) or probably (14%) recommend their agent for future services.

Highlights From the Profile of Home Buyers and Sellers

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.

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.