August 3, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Rising Mortgage Rates and Low Inventory Continue to Impact California Home Sales

California’s Median Home Price Records Its Highest Year-Over-Year Gain in 15 Months

By Dolores Quintana

California home sales faced their third consecutive monthly decline in August due to rising mortgage rates and a persisting shortage of homes for sale, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) report. Despite these challenges, the statewide median home price saw its most significant year-over-year gain in 14 months.

Closed escrow sales for existing, single-family detached homes in California reached a seasonally adjusted annualized rate of 254,740 in August, reflecting a 5.3 percent decrease from July’s revised 268,940 and an 18.9 percent drop from the previous year when 314,270 homes were sold on an annualized basis. This marked the 11th consecutive month, with sales remaining below the 300,000-unit pace.

Year-to-date statewide home sales were down 29.2 percent in August.

The statewide median home price in August rose to $859,800, a 3.3 percent increase from July’s revised $832,400 and a 3.0 percent surge from $834,740 a year ago. This represents the highest median price in 15 months and the highest since California’s peak price of $893,200 in May 2022.

Jennifer Branchini, C.A.R. President, noted that despite high mortgage rates and tight inventory, prospective buyers continue to show interest in the housing market. She anticipates that once interest rates stabilize in the fourth quarter, buyers and sellers currently on the sidelines will re-enter the market.

C.A.R.’s Senior Vice President and Chief Economist, Jordan Levine, explained that elevated interest rates since April and tight housing inventory led to California home sales reaching a seven-month low in August. However, he expects macroeconomic fundamentals to soften in the last quarter of this year, gradually easing mortgage rates and supporting both the supply and demand sides of the housing market.

Key points from C.A.R.’s August 2023 resale housing report:

  • All major regions in California recorded double-digit sales declines in August year-over-year.
  • 43 of the 52 tracked counties experienced sales decreases compared to August last year.
  • The statewide unsold inventory index (UII) stood at 2.4 in August, down 14.3 percent from a year ago.
  • Active listings at the state level have fallen year-over-year for five consecutive months, with over 20 percent declines in the last four months.
  • The median number of days to sell a California single-family home was 18 days in August.
  • The 30-year, fixed-mortgage interest rate averaged 7.07 percent in August, up from 5.22 percent in August 2022.
Related Posts

Two LA County Deputies Charged in Off-Duty Scheme Tied to Crypto ‘Godfather’

August 2, 2025

August 2, 2025

Deputies Accused of Abusing Law Enforcement Powers for Beverly Hills Mogul One Los Angeles County Sheriff’s Department deputy pleaded guilty,...

Metro Releases Draft Environmental Report for Sepulveda Transit Project, Public Comment Now Open

August 2, 2025

August 2, 2025

Six Route Alternatives Under Review for Valley-To-Westside Connection The Los Angeles County Metropolitan Transportation Authority (Metro) has released its Draft...

Trump Administration Freezes $200M in UCLA Research Funds Over Student Protests

August 2, 2025

August 2, 2025

UCLA Says Freeze Harms Life-Saving Research With No Connection to Stated Reason Donald Trump’s administration has blocked $200 million in...

Culver City’s National Night Out Returns August 5 With K9 Demo, Live Music, and Fun

August 2, 2025

August 2, 2025

This Year’s Celebration Moves to the Culver Steps to Encourage Community Spirit Culver City’s annual National Night Out celebration returns...

City Installs Crosswalks In Sawtelle District After Residents Paint Their Own

August 1, 2025

August 1, 2025

Los Angeles Begins Official Safety Upgrades Near Stoner Park City crews began installing official crosswalks Friday near Stoner Park in...

HARD Summer Returns This Weekend With New Sound Strategy After 2024 Noise Complaints

August 1, 2025

August 1, 2025

Sold-Out EDM and Hip-Hop Festival Runs Saturday and Sunday at Hollywood Park The HARD Summer music festival is set to...

Free Document Shredding, Electronics Recycling Set for Saturday in Culver City

August 1, 2025

August 1, 2025

Culver City Offers Secure Way to Recycle Tech and Shred Paper This Weekend Residents will have the opportunity to responsibly...

Last Call: Culver City Wants Your Input in Hiring Its Next City Manager

July 31, 2025

July 31, 2025

Public Survey Open Through August 1 Invites Residents to Weigh In As Culver City begins its search for a new...

1,000 Additional National Guard Troops Withdrawn From LA as Federal Presence Continues to Shrink

July 31, 2025

July 31, 2025

National Guard Presence in Los Angeles Slashed Again Amid Ongoing Rollback Roughly an additional 1,000 National Guard troops have been...

Luxury Watches Stolen From Keanu Reeves Recovered in Chile, To Be Returned to Actor

July 31, 2025

July 31, 2025

Six Rolex Watches Worth Over $120,000 Were Seized in Santiago Police Raid Six high-end watches stolen from actor Keanu Reeves’...

Aging Mindfully: Zen-Inspired Senior Living Takes Shape in Simi Valley

July 31, 2025

July 31, 2025

Two Zen-inspired senior living communities are embracing the reality of aging — consciously. Ensō Village, open since 2023 in Sonoma County,...

Trio of Suspects Busted in $50K Beauty Heist at Culver City Store

July 31, 2025

July 31, 2025

Burglars Try to Flee, But Culver City PD Catches All ThreePolice arrested three suspects late Sunday night following a break-in...

Lulu Hosts Summer Tardeada With Guest Chef From Oakland’s Bombera

July 30, 2025

July 30, 2025

Chef Dominica Rice-Cisneros Joins Alice Waters for a Courtyard Celebration Lulu, the acclaimed restaurant located at the Hammer Museum, will...

Film Review: Together

July 30, 2025

July 30, 2025

By Dolores Quintana Dave Franco and Alison Brie, a married couple in real life, star in Michael Shanks’ gruesomely passionate...

Heidi Klum’s Tropical Erewhon Smoothie Drops Just in Time for Summer

July 30, 2025

July 30, 2025

Supermodel’s Limited-Edition Drink Blends Kiwi, Coconut, and Matcha Erewhon has debuted its newest celebrity smoothie collaboration, this time with supermodel...