When we looked at July data, we saw home sales volume decreasing for the fourth straight month nationwide and third in California. August added to the same downward trend in California, making it the fourth straight month for California. Sales of existing single-family homes dropped 1.8% since July.
At the same time, prices were still going up, though at a slower rate as sellers are catching on to the lowered demand generated by high prices and high interest rates. California’s median home price was $596,410 in August, an increase of 0.8% from July.
C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young believes this is the start of a shift. Prices are roughly at their peak, and we should see them begin to either flatline or drop soon. More homes are staying on the market unsold and sellers are more willing to take price reductions.
Southern California had the most significant decline in sales volume. It’s been going down in most counties, though, with the exception of Marin, Napa, Kern, and Merced counties. Marin and Napa counties don’t account for much of the Bay Area’s sales volume, but their contribution was enough that the region had an overall increase of 0.3%.