Home Listings in California are RISING!

Anya’s Market Bites:

Like the saying goes, 'April showers bring May flowers,' and in the real estate market, we're seeing a similar trend. As we navigate through the challenges of fluctuating housing prices, it's important to remember that just as the rain nourishes the soil for blossoming flowers, these market shifts can pave the way for new opportunities in the housing sector.

Last month we saw the largest jump in over a year in home listings in California. Data from the California Association of Realtors (CAR) confirms this trend..

• Active Listings and New Listings:

  • Active listings increased based on monthly comparisons to last year for the second consecutive month.

  • New active listings also saw double-digit growth as the spring season for home sales began.

• Median Home Price:

  • The median home price in California reached its highest level in seven months, jumping nearly 8 percent to about $855,000 in March compared to a year ago.

  • Prices were up 6 percent from February.

• Selling Environment:

  • Sellers are experiencing favorable conditions, with about half the homes selling above list price.

  • Homes are spending less time on the market, taking about 19 days to sell a single-family home last month compared to 24 days a year ago.

• Decline in Sales:

  • Sales were down on a monthly basis by about 8 percent and declined more than 4 percent from a year ago.

  • Elevated mortgage rates are keeping sellers locked into their low home loans, reducing the supply of available homes.

• Affordability Challenges:

  • Mortgage rates have increased, reaching about 7 percent recently, adding to the affordability challenge for homebuyers.

  • CAR's affordability index indicates that about 85 percent of residents in California can no longer afford a median-priced home.

• Economic Factors:

  • A strong economy in California is allowing some buyers to compete for the limited homes available in the market.

  • High-income earners are driving up the price of housing, making it less affordable for many.

• Inventory Shortage:

  • The lack of supply is contributing to high home prices in the state as competition for available homes intensifies.

  • Demand continues to outstrip supply, leading to further price increases despite rising mortgage rates.

(Source: California Association of Realtors)

All the best,

Anya

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