May 21, 2024 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

Father-Son Duo RSG Janitorial Services Finds Joy In Serving Customers

May 21, 2024

May 21, 2024

Finding handymen and janitorial services can be a hard pick. RSG Janitorial Services, based in Los Angeles, offers a mix...

LA Pride 2024 Announces George Takei, Cassandro, and Kristin Crowley as Grand Marshals

May 21, 2024

May 21, 2024

Celebrate “Power in Pride” with live broadcasts, a block party, and special events This year’s LA Pride Parade will celebrate...

Target Slashes Prices on 5,000 Everyday Items for Summer Savings

May 21, 2024

May 21, 2024

Consumers to Enjoy Reduced Prices on Essentials Starting Now Target Corporation announced on Monday it will lower the everyday regular...

Check Out Local Library Events and Weekly Reading Programs For This Week

May 21, 2024

May 21, 2024

Brentwood, Palisades, and West Los Angeles Libraries Are Ready for Summer As summer approaches, local libraries are gearing up for...

Los Angeles County Rent Relief Program Opens Second Round of Applications

May 20, 2024

May 20, 2024

Applications Accepted Until June 4, Funding and Support Have Been Increased  The Los Angeles County Rent Relief Program (LARRP) has...

Detectives Seek Public’s Help to Locate Attilio Brillembourg, Stepfather of Greek Princess

May 20, 2024

May 20, 2024

Stepfather of Princess Tatiana of Greece is Missing in Malibu Detectives from the Los Angeles County Sheriff’s Department are seeking...

Culver City Council to Review Parking Rates, Proclaims May Heritage Months

May 19, 2024

May 19, 2024

Gender-Neutral Restrooms Ordinance and City Proclamations Announced On Monday, the City Council of Culver City unanimously agreed to revisit new...

Hepatitis A Case Reported in Beverly Hills Whole Foods Employee

May 19, 2024

May 19, 2024

Health Officials Advise Vaccination for Seafood Customers  The Los Angeles County Department of Public Health is investigating a hepatitis A...

Assault Suspect Arrested After High-Speed, Wrong Way Chase on 405 Freeway

May 19, 2024

May 19, 2024

Erratic Driver Rams Police Car, Causes Multiple Collisions During Pursuit An erratic driver suspected of assault with a deadly weapon...

Mayor Bass Orders Increased Police Presence on LA Metro After Surge in Violence

May 17, 2024

May 17, 2024

A Shocking Murder Was Committed on a Metro Bus After Announcement Mayor Karen Bass has directed an increase in law...

Inaugural Design Miami.LA Fair Opens in Holmby Hills

May 17, 2024

May 17, 2024

Exclusive Access and Dynamic Talks From May 16-20 The inaugural edition of Design Miami.LA opened yesterday, running until May 20,...

(Video) Design Miami LA Is Now Open in Holmby Hills

May 17, 2024

May 17, 2024

Sainte Marguerite en Provence Is the exclusive rosé sponsor. Welcome to the Greenhouse. @culvercitywlanews Design Miami LA Is Now Open...

Shock-A-Go-Go Film Festival Returns to Lumiere Cinema in Beverly Hills

May 17, 2024

May 17, 2024

A Weekend of Horror, and Cult Classics With Exclusive Q&A Sessions The Shock-A-Go-Go Film Festival is set to return to...

Devastating Fire Closes Historic Westwood Restaurant, Causing Serious Damage

May 16, 2024

May 16, 2024

Roozbeh Farahanipour Launches GoFundMe to Restore Cultural Tribute The Persian Gulf Restaurant and Museum in Westwood has sustained serious damage...