California’s housing market is still above pre-pandemic levels, but the environment has softened in July for the third consecutive month, according to the California Association of REALTORS® (C.A.R).
By the numbers:
– Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 428,980 in July
– July home sales decreased 1.6% monthly from 436,020 in June—down 2% YoY.
– Despite the downward trend, California home sales maintained year-to-date increase of 27.3%.
– After four consecutive months of record highs, California’s median home price fell 1% monthly to $811,170 in July, down from June’s $819,630 and up 21.7% from the $666,320 last July.
– The median price in California remained above the $800,000 benchmark for the fourth consecutive month.
California housing market continues to normalize as home sales and prices curb in July.The takeaway:
“The California housing market continues to normalize from the white-hot conditions we experienced at the height of the pandemic with both sales and prices moderating as we slowly transition from the peak home-buying season into the fall,” said C.A.R. President Dave Walsh. “The market remains solid, however, as sales were still the second highest level for a July in the last six years, and the statewide median price continues to perform above last year’s level by double-digits. Housing supply, while improved, remains tight and market competition is still heated with homes flying off the market in record time.”
“Despite dipping slightly from its record peak set in June, California’s median price remains elevated as supply constraints continue to provide upward pressure to support home prices,” said C.A.R. Vice President and Chief Economist Jordan Levine. “However, home prices should ease as housing inventory improves in the third quarter and the market continues to normalize during the traditional off-season.”
