What July’s Market Means for You
The California housing market is showing signs of shifting, giving both buyers and sellers something to think about. Home sales slowed in July, with 261,820 existing homes sold, down about 4% from last year. Prices, however, are holding steady. The median home price came in at $884,050, just slightly lower (0.3%) than a year ago. On average, homes are selling for $435 per square foot, a slight dip compared to last year.
One of the most significant changes? There are more homes for buyers to choose from. Unsold inventory rose to 3.7 months, nearly a 28% increase year-over-year. Homes are also spending more time on the market, with the average at 28 days—about 40% longer than last year. This shift gives buyers a bit more breathing room in their search.
Sellers are still getting strong offers, but buyers are gaining some leverage. The sales-to-list price ratio dipped to 98.5%, meaning homes are selling just under the asking price more often than before.
The affordability index nudged up slightly to 15%, showing a modest improvement for buyers. Mortgage rates are also offering a bit of relief, with the 30-year fixed rate averaging 6.72%, down 0.13% from last year.
What this means for you. If you’re a buyer, more inventory and longer market times could mean better opportunities to find the right home—and negotiate a fair deal. If you’re a seller, pricing your home competitively and being flexible will help you stand out in this adjusting market.
The bottom line: California’s market is balancing out. It’s still competitive, but the pace is slowing, creating opportunities on both sides of the table.
Source: California Association of REALTORS®