![]() With borrowing costs remaining high in the next 12 months, a pull-back in sales and a downward adjustment in home prices are expected in 2023.” Vice President and Chief Economist Jordan Levine said “ High inflationary pressures will keep mortgage rates elevated, which will reduce homebuyers’ purchasing power and depress housing affordability in the upcoming year. There’s little doubt all counties in the North will see decreased sales and prices due to the atmospheric rain dump.Ĭ.A.R. San Francisco saw home prices raise 4.3% bucking the downward trend. In January, Marin county suffered the largest month to month price drops (-19.9%), with San Francisco County fell -11.4%, Santa Barbara County fell -15.6%, Mendocino down -35.1% and Yolo county dropped by 12.9%. Home Sales GrowĬAR’s Realtor® sentiment reveals California Realtors® are more optimistic about sales, prices and listings now at February 20th, 2023. tech sector uncertainty will weaken demandĬondos and townhomes saw a slight rise price during February.Įxisting home sales by price level.home prices likely will keep declining slightly. ![]() The biggest factors for the housing market forecast: Is it a good time to buy a home or rental property in the Golden State in 2023? The question always asked is will home prices fall? Most Millennial-aged Californians will prefer to continue renting until there is more economic certainty and numbers to justify the buy decision. Vice President and Chief Economist Jordan Levine said home prices will soften given demand is shifting away from high luxury homes to more affordable units. Sales in 34 counties plummeting more than 30% and 8 counties registering drops of more than 50% year over year.Ĭ.A.R. reports all counties suffered double-digit year over year sales drops in February. Screenshot courtesy of CAR.Ĥ/5ths of All Counties Saw a Price DeclineĬ.A.R. California’s Real Estate Market in February?įebruary’s numbers were consistent with trends in some areas, yet highly atypical in others as mentioned above.Īs mortgage rates slide, home buyers in California were a little more successful in finding a home or rental property during February.Ĭalifornia home prices in February 2023. Buyers could be deterred by tighter lending rules as a risk off environment continues to grow. The major bailout of First Republic, a large regional bank is creating headlines and the concern is that it may not be enough to stem a tide of troubled financial institutions. The banking sector looks to be under pressure as the Silicon Valley Bank and Signature Bank entered bankruptcy. We can expect similar sales/price trends in other markets including the Atlanta Housing market, New Jersey Housing market, Nashville housing market, Denver Housing market, and Las Vegas housing market. ![]() The median number of days it took to sell a California single-family home tripled to 28 days in February from 9 days one year ago. ![]() Difficult in finding buyers and getting sales done would likely contribute to lower prices. The question for the market now is whether the Silicon Valley Bank initiated slide in the banking sector will lead to less demand, tighter lending, more unemployment, or whether it helps ease inflation across the US which allows the FED to pivot on interest rates.Ĭ.A.R suggests that the drop in year over year sales may be due in part to the effects of the atmospheric river event which is continuing. It was the 6th straight month of price declines. ![]() The latest housing stats from CAR shows single family house prices dropped 2.1% despite a rise in sales of 17.6% in February.įebruary’s statewide median home price fell almost $16,000 on average (-2.2%) to $735,480, which was down 4.8% vs February 2022 and down 18.3% from May 2022, its recent peak of $900,170). Is the residential real estate market in California showing a rebound this year? Sales are up strongly month to month, although far from levels 12 months ago. ![]()
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