California Housing Market Update 2023: House Prices & Trends – The Mortgage Reports

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California’s November housing market by the numbers:

  • The median home price across California in November reached $822,200, reflecting a 2.2 percent decrease compared to October and a 6.2 percent rise from November 2022.
  • Single-family home sales totaled 223,940, marking a 7.4 percent decrease from October and a 5.8 percent drop from November 2022.
  • The median number of days it took to sell a single-family home was 21 days compared to 29 days in November 2022.
  • By the end of November, year-to-date statewide home sales had decreased by 25.9 percent compared to the same period last year.

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California’s housing market update for November 2023

According to the California Association of Realtors, existing home sales experienced a slight decline, while home prices continued their upward trajectory. Several factors contributed to the decline in home sales. First, increased mortgage interest rates have made borrowing more expensive, deterring some potential buyers from entering the market. Coupled with this, the shortage of available homes for sale has created a competitive environment, making it challenging for buyers to find suitable properties.

Despite the sluggish sales, the statewide median home price reached $822,200 in November. This was a 2.2 percent decrease from October and a 6.2 percent gain from last November. The limited inventory of homes for sale has prevented prices from falling significantly, and this trend has been observed across major regions in the state.

C.A.R. President and Realtor Melanie Barker stated that the early months of next year could see a resurgence in interest from potential homebuyers.

“With mortgage rates dropping to the lowest level in four months in recent weeks and the Federal Reserve indicating it plans to cut rates more than previously anticipated in 2024, more prospective homebuyers could reenter the market early next year,” Barker said.

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What’s happening in the California housing market at the regional level?

When it comes to the various regions across the Golden State, the real estate market continued to showcase a range of trends in November 2023.

Here’s a closer look at the median home prices and their month-to-month (MTM) and year-to-year (YTY) percentage change across California.

Median Sold Price of Existing Single-Family Homes & Sales

State/Region/County Nov. 2023 Oct. 2023 Nov. 2022 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
Calif. Single-Family Home $822,200 $840,360 $774,150 -2.2% 6.2% -7.4% -5.8%
Calif. Condo/Townhome $660,000 $660,000 $610,000 0.0% 8.2% -13.2% -7.5%
Los Angeles Metro Area $785,000 $785,000 $720,000 0.0% 9.0% -13.5% -4.0%
Central Coast $955,000 $1,050,000 $900,000 -9.0% 6.1% -23.8% -10.4%
Central Valley $474,800 $473,000 $450,000 0.4% 5.5% -16.9% -14.4%
Far North $375,000 $376,000 $365,000 -0.3% 2.7% -22.1% -5.5%
Inland Empire $567,500 $561,410 $540,000 1.1% 5.1% -11.4% -6.3%
San Francisco Bay Area $1,250,000 $1,268,940 $1,197,000 -1.5% 4.4% -15.4% -6.2%
Southern California $824,500 $820,000 $750,000 0.5% 9.9% -14.2% -5.6%
Source: California Association of Realtors (C.A.R.)

The Central Valley recorded the largest annual sales decline at 14.4%, followed by the Central Coast (10.4%), the Inland Empire (6.3%), and the San Francisco Bay Area (6.2%). Among the counties, Calaveras had the biggest decrease in sales, with a decline of 33.3% compared to the previous year.

In terms of affordability, the Far North region continues to claim the top spot in California with a median home cost of $375,000 in November. In contrast, the tech-centric region of San Francisco Bay predictably recorded a median home price of $1,250,000 last month.

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Is it a good time to buy a house in California?

Making the decision to purchase a home in California is a deeply personal one, influenced by many factors, including your goals, financial means, job stability, and lifestyle preferences. And while California’s real estate prices have continued their upward trajectory for years, if your dream is to call the Golden State home, it remains a good investment opportunity.

So when you are ready to make a home purchase in California, securing the right home loan is an essential part of the process. Start by comparing lenders and find the best financing option tailored to your needs. Simply complete this form and we’ll introduce you to some helpful lenders.

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