Should I Stay Or Should I Sell Now? – California Housing Report

To paraphrase a line from the English band The Clash’s song “Should I Stay or Should I Go” (modified for real estate), “Should I Stay or Should I Sell Now?” is our theme for this blog. In last month’s California Association Of Realtors (C.A.R.) November Sales and Price Report, housing demand in California continued to fall as rising interest rates further dampened the state’s housing market in November, as home sales registered the lowest annualized pace since October 2007 and the largest year-over-year sales drop in at least the past four decades at 47.7%.

Now in their latest report released 1/18/2023 a respite in rising interest rates helped edge up California home sales in December to break a three-month sales decline but still remained below the 250,000 level for the second straight month, according to the California Association Of Realtors December 2022 Sales and Price report.

The report further states closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 240,330 in December, according to information collected by C.A.R. from more than 90 local REALTOR^® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. December’s sales pace was up 1.1 percent on a monthly basis from 237,740 in November and down 44.1 percent from a year ago, when 429,860 homes were sold on an annualized basis.

California’s median home price remained on a downward trend for the fourth straight month and has been down on a monthly basis for six of the last seven months. December’s median price of $774,580 was down 0.4 percent from the $777,500 recorded in November. December’s price also was lower on a year-over-year basis for the second consecutive month, declining 2.8 percent from the $796,570 recorded last December. For 2022 as a whole, California’s median home price increased 4.5 percent from 2021’s $786,750 figure but is expected to decline by 8.8 percent in 2023.

With 30-year fixed mortgage interest rates having doubled from this time last year and the Fed still signaling more increases to the Federal Funds rate in 2023, it appears C.A.R’s forecast of an 8.8% decline in the median home price does not look out of line.

Are you thinking of selling?  Want more information to help you make a more informed decision? Reach out to us for a free consultation or just to find out how much your house is worth.