Overall, the California real estate market

The California real estate market is starting to cool off after a long period of rapid price appreciation. In July 2023, the statewide median home price was $832,340, down 0.7% from June but up 0.2% from July 2022. Sales of single-family homes fell by 3% in July, and is down 9% vs 12 months ago.

There are a number of factors contributing to the cooling of the California housing market. Rising interest rates are making it more expensive to borrow money, and this is making it less affordable for buyers to purchase homes. Additionally, the supply of homes for sale is starting to increase, which is giving buyers more options and making it less likely that they will have to overbid on homes.

The California Association of Realtors (CAR) is forecasting that the statewide median home price will dip to $758,600 in 2023, for an 8.8% decline. However, it is important to note that the housing market is still very strong in California, and prices are not expected to fall significantly.

Here are some of the key trends to watch in the California real estate market in 2023:

• Rising interest rates: Interest rates are expected to continue to rise in 2023, which will make it more expensive to borrow money. This will likely have a cooling effect on the housing market, as buyers will have less money to spend.
• Increasing inventory: The supply of homes for sale is starting to increase, which is giving buyers more options. This is making it less likely that buyers will have to overbid on homes.
• Shifting buyer preferences: Buyers are starting to become more interested in homes that are more affordable and have more features, such as a yard or a garage. This is putting downward pressure on prices for luxury homes.
• Impact of the pandemic: The COVID-19 pandemic has had a significant impact on the housing market. The pandemic has led to an increase in demand for homes with more space, such as single-family homes and condos. It has also led to an increase in remote work, which has made it more feasible for people to live in less expensive areas.

Overall, the California real estate market is expected to cool off in 2023, but it is still expected to be a strong market. Buyers should be prepared to act quickly if they find a home that they want, as inventory is expected to remain tight.

For personalized service fill out 818 property contact form & we'll take the stress out of buying, selling, renting your property