Thanks to a brief break from rising interest rates, California home sales activity rose 1.1 percent in December 2022.
While the slight increase was enough to break a three-month downward trend, according to the California Association of Realtors (CAR), statewide home sales remained below 250,000 units for the second month in a row. .
Closed sales of existing detached single-family homes in California totaled a seasonally adjusted annualized rate of 240,330 as of the end of December, up 1.1% from November 2022 and down 44.1% from the 429,860 homes sold in 2021.
“It is encouraging to see a rebound in December home sales as buyers took advantage of a slightly more favorable credit environment that provided them with a window of opportunity to enter the California real estate market,” said Jennifer Brachini, president of CAR and REALTOR of the Bay Area. .
“As buyers and sellers gradually adjust to the new normal, we are seeing a shift towards a more balanced market,” he said. “With both parties slowly adjusting their expectations, it is to be expected that we will see increased sales as market conditions improve further throughout 2023.”
The median home price in California continued its downward trend for the fourth consecutive month. The median home price for December registered $774,580, down 0.4 percent from the November median of $777,500. Year-over-year, the average housing process decreased 2.8 percent from the December 2021 average of $796,570.
“Home prices are holding up relatively well, despite rising interest rates and falling home demand in recent months,” said Jordan Levine, CAR vice president and chief economist. “Adjusted home inventory was a primary factor preventing prices from free falling as new active listings continued to slide to hit the lowest level in at least five years.”
Through the full year of 2022, the median home price in California rose 4.5%, but that number is expected to drop to 8.8% in 2023.
Regionally, all major regions posted year-over-year sales declines of more than 35 percent. Southern California reported the largest decline of all regions at -48.3 percent, followed closely by the Central Coast at -45.9 percent.