FRESNO, CA (KMJ) Home sales in the Golden State have fallen to its lowest level in 16 years, according to the latest report from the California Association of Realtors.
The latest figures show that home sales during November were down 7.4% compared to October and down by 5.8% compared to November 2022. The decline is the 29th straight drop in home sales statewide but the smallest decrease in over a year.
At the regional level, sales in all of California’s major regions dropped in November on a year-over-year basis. The Central Valley had the biggest decrease, followed by the Central Coast.
“Elevated mortgage interest rates and a persistent shortage of homes for sale hindered home sales in November,” CAR President Melanie Barker said in a statement.
The median cost of a single-family home in California decreased by 2.2% and now stands at $822,200 but is still 6.2% higher than it was a year ago.
“While sales have been weak for the past several months, a tight supply of homes for sale is keeping home prices from falling,” CAR senior vice president and chief economist Jordan Levine said in a statement.
“Going into 2024, the recent decline in mortgage rates, along with the upward momentum in home prices, could motivate more would-be sellers to list their homes for sale in the spring homebuying season.”
