Statewide single-family home sales in October were down 10.4% from September and down 36.9% from October 2021, the California Association of Realtors reports.
October’s statewide median home price was $801,190, down 2.5% from September and up 0.3% from October 2021. Year-to-date statewide home sales were down 18.5% in October, according to the association.
As we reported last week, home sales in western Nevada County communities were off 27.8% from September sales and down 23.3% from October 2021. The median price of a home sold locally was $525,000, the same median price recorded in September.
“California’s housing market continued shifting in October as the monthly average 30-year fixed rate mortgage hovered near 7% and led to the lowest sales level since February 2008 and the largest year-over-year decline since December 2007, outside of the pandemic,” the association reported.
Throughout the state, sales have trended downward for 16 consecutive months in year-over-year comparisons. According to the state association, October marked the third time in the last four months that sales dropped more than 30% from the year-ago level.
“While October’s sales and price results were weaker than what we’ve experienced in the past couple of years and could slow further in the upcoming off-season, the market bottom could be in sight,” CAR President Jennifer Branchini said. “Homes are still selling relatively quickly at 23 days on the market, one in four homes is selling above list price due to limited inventory, and with median price growth remaining positive in four of the five price segments, home prices are holding up reasonably well.”
The average days on market in western Nevada County was 39 days for October.
“Excluding the three-month pandemic lockdown period in spring 2020, October’s sales level was the lowest since February 2008. With pending sales showing a 50% drop from a year ago, we can expect additional tempering in housing demand in the coming months, as we previously forecasted,” said CAR Vice President and Chief Economist Jordan Levine. “Home prices will also moderate further over the next several months as interest rates remain elevated in the near term and seasonal factors come into play.”
According to the association, the 30-year, fixed-mortgage interest rate averaged 6.90% in October, up from 3.07% in October 2021, according to Freddie Mac. The five-year, adjustable mortgage interest rate averaged 5.71 percent, compared to 2.54 percent in October 2021.
Click here to read the California Association of Realtors’ full statewide report for October.
