Welcome back California home sales in May stalled out as mortgage rates hit The highest levels in about 5 months in Contrast California's median so price Reached a new record high driven Partially from a significant rise in Sales of higher price houses however There's still approximately 40% more House over sale right now compared to a Year ago a Statewide which is a welcome Relief for home buyers yet we still have Far fewer compared to pre Co levels this Is based on a brand new report from the California Association Realtors and in Today's video I'm going to share all the Details and by the way if you guys want A real estate agent referral please Check out my website which is real Estate TEF finder.com or email me at Jasonjason walter.com if you guys want To buy or sell house in the greater Sacramento area any case let's go ahead And Dive Right In because I have a lot To share here so here's a slideshow I Pulled from the California Association Alters website um I won't share all the Slides because it this video would be Like 13 hours long instead I kind of w This down to um what I feel you guys Should know regarding what's happening Right now in California so for the state As a whole there was 272,000 existing Houses um that sold these are detached Single family houses excluding multif
Family units and of course excluding Brand new home construction this by the Way is a seasonally adjusted and also an Annualized rate as well any case that is Down 6% um compared to one year ago Which is fascinating because again last Year we had basically multi-decade lows Regarding home sales and right now we're On track to have fewer home sales this Year in California also Statewide as Well compared to uh last year and you Can see that right here because a Year-to date sales are flat so we Basically have the same number of home Sales in May compared to June which is Absolutely wild uh regarding home prices And I'm talking about the median St Price uh that R to $98,400 So half of the house that sold in May Sold for above that amount and half sold Below that's what the uh median number Means that's an increase of nearly 9% Year-over-year and also this is a All-time record high as well I have a Lot of more data share regarding that Based on my own analysis of cars data Here in a little bit uh meanwhile the Month supply is at only at 2.6 months Still relatively low levels especially Compared to a St quace being or compared To pre-co levels but that is a fairly Significant rise of about 24% from May of 2023 dayson Market that
Did decrease by 6% so houses are uh Selling faster compared to last year on Average selling about 16 days so you List your home for sale in about 16 days You accept an offer from home buyer so Houses selling about two weeks on Average in California And by the way this is part one of my Two-part video series I make each and Every month regarding the California Housing market I also um post a video Regarding the Sacramento housing market About once a month as well so stay tuned For that here in a little bit all right Let's talk about sales because this is Just absolutely wild looking at this uh So sales compared to April decreased by 1.1% but sales tend to rise in the Spring and early summer months but Despite that we're down from a year ago And also down compared to the previous Month right now about 272,000 is the uh Sales pace for May uh it's more normal To see a sales pace of around 400,000 Units so for example back in 2014 Through 2019 around 400,000 was a more normal number now We're less than 300,000 so a lack of Houses being sell being sold let me just Zoom in here because looking at 20 22 Which is right here basically sales fell Off e Cliff we were at more nural levels And then the last half of the Year fell Off a cliff 2023 in uh in the US as a
Whole we had a multi- deade low Regarding sales and now this year we're Still at relatively low low levels in my Opinion is due to the rise in mortgage Rates uh this year which is limiting Home sales so far let's also take a look At this because we're seeing more sales Of higher price houses like I mentioned At the very beginning of this video this Is something we've been seeing on a National level but also in California For several months so for the month of May compared to May of 2023 there was a 30% increase of houses That sold for over $2 million in the Range of 1 million to just under 2 Million an increase of 9% in contrast Houses that sold for the range of 500,000 to 74900 000 that decreased by 5% and all these price segments below That decreasing compared to a year ago So we're seeing sales at the upper range Of the market um Rising which is Contributing to the rise of the median So price Statewide we're also seeing That here uh Nationwide as well so What's wild about this is not right There is this right here so for the Month of May 30 some per of all hous That sold were selling or did sell for Over $1 million one year ago that ratio Was only 32% in contrast in the range of zero let Me know if you guys got a house for free
Uh but uh for houses that sold for less Than 500,000 that ratio was only 22% of All houses that sold this may one year Ago we were at 25% so fewer sales at the Lower range of the market and more home Sales for higher price properties Another way to look at this is this Right here so sales of less than 500,000 Is the Blue Line The Gray Line is houses That sold for over $1 million looking at Preco levels back in 2019 that ratio was about 45% of houses That sold for less than 500,000 and back In uh then may 2019 that ratio for Houses over $1 million was about 20% so Only uh 20% selling for over $1 million So 80% sold for Less than1 million Now that ratio has been flipped right 37% or did sell for over $1 million We're only 22% were less than 500,000 Also according to the California Association rors that ratio of 37% is The biggest share in at least the past Five years and again this is all Contributing to the rise in the median Sell price in California now looking Into the future here let's look at Pending home sales that has been Relatively flat for about uh 6 months Pending sales basically decreased by 6% From 12 months ago so this implies we're Going to see a relatively low level of Close home sales in the coming months Because we're not seeing a a sharp rise
In pendings like we saw in 2020 and 2021 For example okay let's talk about prices Because I have a lot to share regarding That uh the median sold price in California $98,400 a small increase of 4% compared To the previous month but we're up by Nearly 9% year-over-year according to The California Association Realtors Stronger sales of higher pric properties Contributed to solid medium price growth Especially since million dooll home Sales in California have been rising More rapidly than more affordable Counterparts in the state so not only we Seeing sales of higher pric properties We're also seeing new listings of more Expensive properties as well and a lack Of More affordable properties hitting the Market sales in the million dooll and Higher Market segment Rose by 15.5% Year-over-year in May while sales for Less than 500,000 uh decrease by 12.2% all right let's get a little bit Nerdy here because I want to share my Own analysis of their data so here's a Look at um overall California's medium So price going back to I think it was Going back to uh when was this uh the Early 1990 So the two columns I pulled from their Website you know several years ago were These two columns everything else is
Based on my own analyses so for the Month of May again we're at 98,000 an Increase of 8.7 compared to uh 12 months Ago a small increase of 4% compared to April so this actually surpasses uh the Previous month's record high because Back in April at 94,000 that also was a new record high So now we're up by about $4,000 compared To the previous month month the previous Peak back in 2022 was only 893,00 now we're up by Nearly 15,000 compared to that Peak when Looking at the year- your change up by 88.7% this is quite the turnaround Compared to one year ago uh the prices Decreased by 6.5% so uh May of 2022 Compared to May of 2023 we saw a decrease of 6.5% now we're up by whopping 88.7% this also marks the 11th Consecutive month of year- of your gains After eight consecutive months of Decreases as you can see right here from November of 20122 through June of 2023 we saw a Decrease in prices but ever since then We've been seeing gains however though This 8.7% increase is actually lower Than the long run average going back to 2010 because based on my nerdy Excel Formula there the uh gain or the change In home prices from uh each and every
May uh going back to 2010 is an increase Of 99.4% this year it's at 8.7% the increase of 4% compared to April is a seasonal gain because home Prices tend to increase in the first Half the year then the second half the Year they tend to uh have a decrease in Sales and home prices so like I Mentioned here we are seasonal increase But it's less than normal though uh Because the average April to may change Going back to 2010 is an increase of 1.8% whereas this may it actually only Increased by 4% also for comparison sake Prices increased by 2.9% in May of 2023 compared to April Now we're only at by. 4% Therefore prices are still gaining Ground but the growth rate is actually Slowing down it's also normal like I Mentioned to see home prices start to Decrease starting around July each and Every year but wait there's more I want To share how the gain this year up by 88.7% how's that compared to years past Especially compared to preco levels so For example the change from May of 2018 Through May of 2019 is a small gain of 1.7% in contrast in 2018 we saw a gain Of 9.2 2017 we're up by 5.8% and also just For fun I added the change in the me and So price from May of 2008 through May of
2009 a giant decrease of 31.9% whereas this year we we're seeing Gain of nearly 9% on top of that the Gain in prices over the past 4 4 years Since May of 2020 a giant increase of 54% what's also wild about that is that Back in May of 2020 the average Third-year fix rate for a 30-year fix Rate mortgage was around 3% so 2020 what was that four years ago Already we had 3% rates and also home Prices um much less than than we have Today let me just look real quick May of 2020 we're at 588,000 was the median so price now it's Over $900,000 so home prices increased Big time but on top of that rates more Than doubled compared to May of 2020 as Well making housing affordability a huge Huge issue for home buyers right now all Right going back to the slideshow from C Uh the price per square foot um reached A new alltime record high uh in May at $446 per square foot up compared to one Month ago and a giant increase compared To one year ago meanwhile the sale price To final list price ratio has maintained At 100% for about a year now hasn't Really changed a whole lot as well this Means on average for the houses that did Sell in may they sold for the sellers Final list price also take a look at This because according to them the share Of houses selling above the sell's
Asking price jumped to an 11mon high as The market Still Remains very much Competitive as I'll share with you guys Here a little bit regarding the month Supply we're still at relatively low Levels in California every Market's Different I'm just talking about for the State as a whole so for the month of May 51% of all houses that sold above the Sellers list price one year ago that Ratio was at 48% uh a best way to kind Of describe our housing market is that It's competitive but not nearly as Competitive compared to the early part Of 2022 and data supports that back in April that ratio was at 72.9% so about 73% of all houses that Sold sold above the sellers asking price Which is absolutely insane now that Ratio is at 51% it is a an 11mon high But it's not nearly as high compared to The craziness of 2022 okay let's change Gears slightly here and talk about Inventory levels in California the month Supply is only at 2.6 months right now One year ago we're at 2.1 months also Did some uh digging for you guys looking At historical averages going back to the 199s I believe so for comparison's sake The peak around the great um financial Crisis of 2008 was a whopping 16.6 month supply set back in January of 2008 now the month supply is at 2.6 Months absolutely insane we had a glut
Of inor to see lease in 2008 and now now We're still at relatively low levels so For example 2.6 months this may is below The average from January of 2016 through December of 2019 uh during that time frame the Average was at 3.4 months now we're well Below that at 2.6 months here's also Look at inventory levels again these are For single family houses in California Um over the past several years in Regards to houses for sale in California We have been seeing a seasonal increase So far this year it's actually Rising Faster though compared to last year um But we're not rising at the same rate of Of uh 2022 so for example in January of 2022 I'm just kind of eyeballing this because They don't provide actual numbers for us Back in uh January of 2022 we had around 15,000 houses for sale by the time we Hit may we had around 30,000 so Inventory dou in about 5 months in Contrast even though we have more House Of sale compared to last year back in January I want to say you know let let Me know what you guys think about this I Think this is around looks like about 20,000 House of sale now we have around 30,000 so inventory did not double During the same time frame as the same Time frame in 2022 and the reason why um Home prices taint in 2022 was the rate
Of increase even though inventory did Not even get close to preco levels and The data actually supports that because During the summer months of 2022 uh inventory did not surpass 40,000 Or is very close to around 40,000 in Contrast 2018 60,000 and also in 2019 Around 55,000 houses for sale so Therefore the reason why we had a Decrease in prices in 2022 Was due to the rapid rate of inventory Not because inventory surpassed pre-co Levels in any case looking at active Lisings or housing Supply that did Increase by 38% from 12 months ago but Looking at the same time frame in 2022 uh inventory increased by about 60% Compared to May of 2021 this growth rate though of a gain Of 38% is the biggest growth rate in About 15 months mons though this of Course is giving more options for home Buyers which also should limit home Price growth in the coming months as Well uh let's also look at the number of New listings because new listings were Decreasing year V year for about 20 Consecutive months but now for the past One two three four five for the past Five months we've been seeing gains Compared to the previous year so right Now we have a increase of 18.6% more new listings compared to one Year ago that was at 23 ,
421 back in May of 2023 just under 20,000 the big change Though that I noticed I've been making This video for you guys for several Years now is that the gap between this Year versus 2019 is actually getting more narrow so For example back in um April new Listings were down 32% compared to April Of 2019 now jumping to this may it's now Only down 28% compared to May of 2019 we Still have a long ways to go though Because new listings are much lower this Year compared to 2018 and 2019 and in Addition to that we have approximately 37% fewer houses for sale this may Compared to May of 2019 all right let's Change gears and talk about how fast or How slow houses are selling this last May they sold in about 16 days one year Ago it was at 17 days so not a lot of Movement regarding that but house is Still selling very very quickly in about 2 weeks on average Statewide in addition We are seeing a uh increase of uh Reduced price listings it has been Growing very very slowly uh so far this Year that ratio is at 32.9% look at this year compared to 2022 Though let me kind of zoom in here so Looking at this year so far um the share Of price reductions has only inre Increase in April and May so a small
Increase compared to uh the previous Months in contrast though look at 2022 January of 2022 is right about Right here January February March April The share price reductions started Increasing big time starting in May and Lasted through the late summer and early Fall months that year now just zooming Back here you can see here that the Share of price reductions back in the Summer month of 2022 was in the range of about 40 to 45% Now it's only 33% with that said please Comment below your biggest takeaways From today's video my biggest takeaway Is that we have record high home prices Uh even though we have 7% mortgage rates For um basically all uh year which is Just mind-blowing I would never guess we Have record high home prices on a National level and in California even Though inventory is up compared to last Year and on top of that we have still Elevated rates as well but what's your Biggest takeaway please leave me a Comment below also if you guys want a Real estate hent referral check out my Website which is real estate TEF Finder.com I appreciate you guys Watching today's video so much hope you Guys have an awesome day and look Forward to seeing you on the next video [Music] He
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