That is only up 2.8% from last July which is the lowest year-over-year price gain in more than 2 years. Vice President and Chief Economist Jordan Levine believes the pace of sales declines is expected to slow in the coming months and market volatility could subside.Ĭalifornia’s median home price dropped by 3.5% or $30,000 last month to $833,910, from the $863,790 recorded in June. President Otto Catrina said “In the midst of the peak home-buying season, high home prices and rising interest rates depressed housing affordability to the lowest level in nearly 15 years, which in turn dampened home sales.”Ĭ.A.R. This was the fourth straight monthly decline and the 13 th straight annual reduction.Ĭ.A.R. Home sales fell 14.4% to a 295,400 annual rate, from June’s volume (344,970) and were down 31.1% from last July 2021 (428,980 homes sold). With rent prices continuing strong, it shows buyers are committing more fully to the rental market, and perhaps waiting for the economy to sort itself out.Īs layoffs in the corporate sector grow against fast rising mortgage rates, July’s housing market decline may accelerate further in September and October. That selling intention is lessened by desires to get a comfortable price, having to make extreme relocation choices, and entering into a new, more expensive mortgage.īuyers are still walking away from deals at a faster pace too. The combination of housing market downturn risk, rising interest rates, and inflation are making more Californian homeowners consider selling their property. Days to sell has risen to 14 days from 8 days last year. CAR states this is due to a pullback in demand. Supply throughout the state rose from 1.9 months to 3.2 months in July. Active Inventory RisingĪctive listings increased 54.9% year over year, although down slightly from June. And home prices took a steeper drop last month despite wages and employment being strong and listing inventories growing fast. The timing of market forces combined with continued low affordability saw home sales drop across the Golden State in July.

With experts believing the Fed will raise interest rates, mortgage rates will be on the rise in September, resulting lower buyer affordability. Home sales and home prices fell again across the state of California in July, but few homebuyers here are feeling positive about their ability to buy in the next 12 months.ĬAR conducted a survey of consumer sentiment last month, and it revealed homebuyers feel it is a poor time to buy and only 8% plan to buy in the next 12 months.

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