Thursday, February 2, 2023

Home sales in California to drop during 2022

A brief respite from rising interest rates helped boost California home sales during December to break a three-month slump, but remained below the $250,000 mark for the second month in a row, according to the California Association of Realtors (CAR). Stayed.

Total Escrow Sales of Existing Single-Family Homes in California seasonally adjusted annualized rate of 240 thousand 330 in December, That’s according to information compiled by CAR from more than 90 local Realtor and MLS associations across the state and reported by PRNewswire.

The sales pace in December increased 1.1% monthly from 237,740 in November and is down 44.1% from a year earlier, When 429 thousand 860 houses were sold annually.

“It is encouraging to see home sales improve in December as buyers took advantage of a slightly more favorable credit environment that provided them with an opportunity to enter the California real estate market,” said Jennifer Branchini, treasurer of the California Homeowners Association. .California Realtor and Director of the National Association of Realtors.

As buyers and sellers slowly adjust to the new normal, he said we are seeing a shift towards a more balanced market. “Both sides gradually adjusted their expectations, We expect to see an increase in sales as market conditions improve further in 2023.” Indian.

For the fourth month in a row, the median home price in California remained on a downward trend and has fallen on a monthly basis for six of the last seven months. The December average price was $774,580, down 0.4% from November’s $777,500.

December’s price was also down year-over-year for the second month in a row, falling 2.8% from last December’s $796,570. For 2022 as a whole, the median home price in California rose 4.5% from the 2021 figure of $786,750, but is expected to decline 8.8% in 2023.

“Home prices have held up relatively well in recent months despite rising interest rates and falling demand for homes. was a major factor preventing adjusted housing inventory prices from falling freely, “New property prices continued to fall to their lowest level in at least five years,” said Jordan Levin, CAR’s vice president and chief economist.

He added that while “the depressed inventory will prevent the greater than 8.8% price decline we forecast for this year, it will also slow sales growth and prevent the real estate market from making a quick recovery.”

Other highlights of CAR’s Current Homes Report for December 2022 include:

Regionally, all major regions reported year-over-year sales declines of more than 35%, and Southern California posted the largest decline of all regions for the third straight month at -48.3%. The Central Coast was the other region of the state with a decline of more than 40% (-45.9%), followed by the Central Valley (-39.3%), the Far North (-38.3%) and the San Francisco Bay Area. (- 37.4%).

Not only have all of the counties tracked by CAR seen sales declines since last December, but they’re all down double digits year-over-year. In fact, Sales in 43 of 51 counties fell more than 30% from a year earlier, as mortgage rates at the end of 2022 were nearly twice as high as they were 12 months ago. Del Norte (-65.5%) saw the biggest sales decline in December, followed by Glenn (-60.0%) and Yolo (-57.7%). Other counties experiencing sales declines of more than 50% were Mono (-56.3%), Monterey (-56.0%), San Bernardino (-54.4%), Riverside (-53.8%), Sutter (-53.3%) And lovers are included. (52.8%).

Regionally, median home prices declined in all major areas compared to a year ago, with the San Francisco Bay Area experiencing the largest annual drop in prices. with 9.6%. All nine Bay Area counties saw year-over-year average declines, with four of the nine counties declining by more than 10%. Other regions fared slightly better, with average prices in the far north falling at a moderate pace of -7.7%, followed by the Central Valley (-4.4%), the Central Coast (-3.3%), and Southern California (-0.9%). is the location of ,

Two-thirds of all counties continued to experience negative year-over-year growth in December, and The median price decreased by more than 10% in 10 counties. Lassen had the largest annual decline (-41.8%) of all counties, followed by Mono (-21.3%) and Napa (-19.1%).

Median prices increased in 16 counties from a year ago, with three of those counties recording double-digit increases. Del Norte posted the largest price increase of all counties with a 13.8% year-over-year increase, followed by Santa Barbara (12.5%) and Tulare (10.5%).

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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