Here's your latest California housing Market update and I have good news but I Also have bad news as well the good news Is that there's 39% more houses for sale Compared to one year ago so depending on Where you're looking you'll likely see More options to choose from if you're Looking to buy a house the other bit of Good news is that home prices are no Longer skyrocketing and mortgage rates Have decreased substantially over the Past one year however though even though Home price growth has been slowing down We're not too far off the all-time Record high that was set just a few Months ago in today's California housing Market update I'll share an update Regarding home prices housing inventory Home sales and also price reductions and Of course much more as well and stay Tuned toward the very end of this video Here because as I always say every Housing Market's different I'm going to Share the trends we're seeing today in California how that compares to other States such as Arizona Texas and Florida Um also this is part one of my two-part Video series I make each and every month For you guys regarding the California Housing market this video is based on What's happening right now the Statewide Level part two which will be posted in Uh let's just call it next week uh will Be uh going over how each of the
Counties fared because of course there's Some very big differences so make sure You're subscribed and I'll definitely Keep posted with latest elments on that With that said I have a lot to share in Today's video so let's begin so here's a Slideshow I pulled from uh the California Association RoR website and By the way they do a fantastic uh job Analyzing the data regarding what's Happening uh this uh slideshow is like 60 pages long by I willing it down to The pages that I think are most Important any case here is the most Recent Trends we have from them and by The way they they're only looking at uh Existing single family houses so Excluding condos town homes and of Course excluding multif family property Properties and brand new home Construction so only looking at the Resale Market uh this is for August just Posted a couple days ago so the uh so Home sales uh Rose by 2.8% Year-over-year and also small gain uh so Far this year compared to January we're Up by .5% uh home prices based on the median Sale price is just under $889,000 that means that of all the House that closed escrow or the sale was Finalized in August half sold below that Amount and half sold above that amount $889,000 compared to the what just over
400,000 on a national level that's the Median so price so that's up by 3.4% Your year so one year ago in California We were at 860,000 now we're approaching 890,000 also the month suppli is at 3.2 Months uh still relatively low levels Especially compared to uh 06 6 through 08 which I'll share that with you guys In a little bit but 3.2 months that is a Big increase compared to one year ago H TR increase up by 33% uh days in the market is at 22 days So houses on average uh it takes about 3 Weeks to sell house so you list your Home for sale about 3 weeks later you Get an offer accepted or you accept an Offer from home buyer but that is an Increase of 25.7% year-over-year so one year ago Dent Market was at 18 days so therefore Not a lot of movement regarding uh days In the market houses still selling Fairly quickly here in California uh a Gain of what 3 days compared to uh one Year ago all right let's talk about home Sales I have a lot to share regarding That so it says here sales in August Slipped to the lowest level in about 7 Months it did it did increase from one Year ago up by nearly 3% but a giant Decrease down by 6.3% compared to the previous month Which of course was July something I um Thought that was kind of interesting
Though this is of course is the measure Of close home sales right so it's very Much a lagging indication of our housing Market but pending home sales a measure Of offers being accepted between buyers And Sellers um actually increase by the Biggest year– your gain since May of 2021 so close home sales a lag Indication um is pointing to a Slowdown In sales because we're down down greatly Down by 6.3% from 1 month ago but on a Year-year basis pening home sales posted The biggest increase since May of 2021 therefore we could see a slight Improvement regarding close home sales In the coming months due to this uptick In pending home sales one thing is for Certain though looking at this graph Which goes back to January 2005 I mean Just look at the lack of sales uh really Ever since the middle of 2022 we saw a Sharp correction in sales uh then and Then we've been kind of maintaining this Low level in sales uh basically on par With uh 207 and 2008 way below uh looking at 2011 through 2019 when back then we had Around 400,000 home sales uh you know on Average each month now we're um less Than 300,000 right now the California Association rors also looked at the Percent change in home sales by price Range it says here the sales growth at
The top in the market has slowed down so Sales at the upper range right here um Are you know barely squeaking out a gain Compared to the biggest increase or the Big increase we saw back in April and May in fact I think I have a note Regarding that uh the upper the upper End the market is still um higher Compared to one year ago but it is Notably slowing down so for example in May this year sales of over $2 million In California Rose by St staggering 30% Compared to May of 2023 so up by 30% year-over-year back Then now we're only up by 6% also in the Range of 1 million to $2 million it Increased by 3% this August but back in May it Rose by 9% so the market of you Know more expensive properties was Increasing at a much faster clip during This spring home buying season compared To this August and of course we're Seeing a lack of home sales for less Than $500,000 down by 6% in the range of 400 To $499 and of course big decreases for Less than that um something that I found To be interesting as well not that is This right here uh this is a percent of Home sales for over $1 Million this August so about onethird of All home sales in Calfornia and August Were for over $1 Million uh not a big difference compared
To when year ago back in uh 23 that Share was at 32% so we definitely paid To live in California if you guys are Living in California and watching Today's video if you are please hit the Like button I great appreciate that Anyways something you guys should also Be aware of as well is this right here So let me just kind of take you back to Memory Lane back in um 2019 so back in May of 2019 uh the share of houses that sold in The range of zero you know let me know If you guys got a house for free but you Know less than $500,000 was at 45% so 45% of all home Sales were less than 500,000 and sales for over $1 million Was only about 20% look what happened once Co hit Though sales less than 500,000 taint yet Sales for over $1 million absolutely Increase and right now that share at 33.5% Are selling for over $1 million but only 22.9% sold for less than $500 so a sharp um you know turnaround Compared to uh preco levels and this is Really due to the fact that home prices Have increased so much over the past 5 Years so remember when I said that close Home sales were decreasing compared to Uh one month ago but uh still increased From one month ago or one year ago so
That it's a lag indication but here is Pending home sales a measure of a future Indication of close home sales uh Looking at close home sales mostly for September and maybe a little bit in October as well so pending home sales Posted the biggest increase compared to One year ago since May of 2021 so it Rose by 7.7% year-over-year this is quite a bit Different compared to September of 2022 back then pending home sales Basically taint they decreased down by 50% compared to 2021 and has been you know in negative Territory for quite some time uh but is Increasing right now um up by 7.7% so I would not be surprised to see Close home sales increase um further Once we get uh September's numbers in About one month's time all right talk About home prices based on the me and so Price 888,246 So just under 890,000 that's an increase Of. 2% compared to the previous month And up by 3.4% year-over-year but that Is the smallest year-year gain in about 11 months now of course I have a lot More to share regarding that I want to Share my own analysis of C's data again Only looking at the medium sale price of Existing single family detach houses um I just added these two columns in some Other analytics as well so let's talk
About what happened this August so this Is based on um home prices for close Home sales for the month of August of Course which is mostly based on offers Being accepted between buyers and Sellers in the previous month which of Course was July back in July according To Freddy Mack for the average 30-year Fix rate we were at 6.85% at that time that was a 3month low Also rates have been coming down ever Since in um at the time of filming this Video which is uh on September 20th uh We basically have rates or average rates For people with great credit in the low 6% range so rates have been coming down Quite a bit ever since really July this Year which will likely we'll have to see About this could cause a increase in Close home sales in the coming months um As indication or as indicated by that uh Gain in Penny home sales that we saw in August like I just Shar with you guys ALS by the way it is actually normal to See home prices Peak each and every Summer and these figures um based on Prices are not seasonally ingested also Looking at the all-time record high that Was set back in May this year uh it was Just over 98,000 now we're at basically $889,000 so we're only down by about $119,000 from the all-time record high That was set just a few months ago
Looking at the year- of- your change up By 3.4% this actually an improvement Compared to one year ago Back in August last year we saw a gain Of 3% uh but this year we saw a gain of 3.4% this marks the 14th excuse me the 14th consecutive month of year-to-year Gains after we had eight consecutive Months of decreases compared to the Previous year however the 3.4% increase Is lower than the long run average going Back to 2010 so for example the long Long run average um going back to 2010 is an increase of 88.3% whereas this year we saw a gain of Only 3.4% so home prices are still up Compared to one year ago but the gains Are much lower than uh the long run Average but having said that we're still Um up more or so compar the scene time Frame um back in 2023 when at that time we're up by 3% um Also this is the correction we saw in 22 So from November 22 through June of 2023 We saw a decrease in home sold prices Compared to previous year the peak right Here was back in April 2023 a decrease Of 8.2% so quite a bit of a or I should say Quite the turnaround compared to the uh Correction we saw in early 2023 all Right let's also talk about the Month-to-month change that actually
Increased by. 2% compared to July which Is actually a turnaround as well because In June and July we saw a decrease in Close some sales compared to the Previous month but this August compared To July we saw a gain of. 2% something I Found to be uh interesting as well I Made a video yesterday regarding what's Happening right now at the national Level according to data from n or the National associat rors and looking at National Trends uh this August compared To July compared to the previous month We saw a decrease in prices down by 1.4% but in California we saw a gain up By. 2% having said that though the gain Of 0 2% is actually much lower than the Long run average because historically Speaking this is July through August Each and every year going back to 2010 is a gain of 2.2% whereas this year a small gain up By only 2% but wait there's more I want To share how this gained up up by 3.4% Compares to uh years past so the change In home prices from August 18 through August 2019 obviously pre-co levels uh Rose by 3.6% so on par with what we're Seeing uh this August however we saw a 5.4% gain in 2018 a 7.2% increase from uh August 2016 Through 17 uh but not nearly as bad as a Giant decrease we saw in August 08 Through August 2009 a giant decrease
Down by nearly 177% whereas this year we saw a gain up By 3.4% what's also astonishing as well and I I just I know it's a it's you know Buying a house in California is a Challenge if you want to buy a first Home um home prices here are you know High high levels compared to the National average basically double Compared to the national average making It very challenging buy houses here in California I get it so looking at prices Compared to August of 2020 compared to August this year an increase of 26% but 5 years ago a giant increase up By 44% all right going back to the Slideshow let's talk about the sale Price to final list price ratio uh that Has been at 100% for quite some time Which means out of all the houses that Did sell in California this August they Sold for the sellers final list price uh N LM Moon regarding that uh but is much Different compared to the craziness we Saw in 21 and 22 when houses on average We selling about 4% over asking um but Also much better than the 96% we saw Back in early 2023 when houses on average were selling 4% less than asking so quite the Volatility over the past several years To say the least um also here's a share
Of houses that sold a above the sell's Asking price so 40.3% sold over asking but this means That 60% sold below asking or at the Asking price uh this is lower compared To one year ago when we were at 47% and also about half the share we saw During the craziness of the spring home Buying season of 20122 I'm actually um Glad that it's over that was such a Challenging market for buyers I just Can't get over it um anyways this is Something interesting as well because uh Your average monthly housing payment Actually is negative for the first time Since July of 2020 um let me kind of break this down For you guys and let me just share the Next slide here so this decrease in in Your average monthly housing payment Which means that your housing payment This August compared to August last year Should be less when when talking about Average home prices and of course Average mortgage rates But we all know that Prices rose right So home prices increased by 3.4% Compared to one year ago so the reason Why this is negative in other words your Housing payments less today compared to One year ago is due to the fact that um Rates actually decrease so looking at That previous slide uh one year ago the Average rate this is August last year
According to Freddy Mack uh just under 7.1% this August it decreased to 6.5% So um housing affordability is improving Due to decreasing rates but not due to Decreasing home prices because of course We're still up by 3.4% all right moving On let's talk about inventory levels so The month supply of this August is only At 3.2 months one year ago we were at 2.4 months um I really love this um you Know chart looking at the month supply Right now by the way 3.2 months means That if no more new listings hit the Market Market in other words if new Listing stopped altogether and we had The current sales Pace that we're seeing Today then all houses listed for sale Would be sold in 3.2 months look at September of 2007 though back then the Month supply was around 16 months so Back then it would take 16 months to Sell all houses that were listed for Sale back then and now we're only at 3.2 Months therefore the month supply back In 2007 20 8 was basically five times Higher than levels we're seeing right Now this my friends is one of the Reasons why I kind of scratched my head Regarding people thinking that we're Going to see a correction in home prices Just like we saw back in 2008 where is The supply going to come from now Speaking of housing Supply it did Increase though it has been increasing
Um steadily all year so according to um C active listings which is the amount of Houses for sale reached its highest Level in nearly 2 years so something to Keep in mind here is that yeah right now We're higher than any other month this Year and 2023 but not as high compared to 2022 and on top of that not nearly as High compared to 2018 or 2019 in fact we have approx they don't Give me the actual numbers but just kind Of eyeballing this looks like we have Approximately 40,000 homes for sale this August compared to around 55 5,000 to Around 60,000 back in the same time frame in 2018 and 2019 so in other words it's Great to see that we have a lot more Houses to choose from if you're looking To buy a house uh but we still have less Um homes for sale compared to two years Ago and we have a lack of Supply Compared to looking at preco levels Which is much different when looking at Other states for example like in Florida And Texas which I'll share that with you Guys here in little bit um also Inventory is up by 39.2% year-over-year Like I mentioned at the very beginning Of this video uh part of that increase Is the lack of sales but also due to the Fact we're seeing more new Supply H in The market in fact new Lin Rose by
16% uh from August of 2023 so there was approximately 21,900 new L sces that hit the market That's obviously higher compared to one Year ago but less than any other August Going back to at least August of 2018 so you know it's it's great to see We're seeing more Supply in the market Uh but we're way below the past several Years so for example let me see if I Yeah I add of this here um we're seeing A gain up by 16% year-over-year But we're still down by about by about 29% compared to August of 2018 so a long Ways to go to have some more more Normaly in our housing market here in California in regards to the share of Price drops we're at 36.1% this August uh which actually is a Decrease compared to the previous month Um but also are way down compared to the Craziness of 2022 when it peaked at around 45% now something I want to share with You guys is this right here this is alus Research.com of course a different Website here's a share price drops uh on A national level the most recent Trends We have from them is actually more Recent the week ended September 13th one Day before my birthday actually um at 39% on a national level Look at California though same chart here same Time frame so 39% on a national level in
California we are at 33% so lower than The uh national average look at Arizona Though Arizona we're at 43% quite a bit Higher compared to to the national Average Florida different animal 45% Texas is at 43% so the share price shops in California is less than the national Average less than Arizona less than Florida as well as less than Texas and Why is that the reason is one of the Reasons is inventory levels so here's Inventory levels uh in California so Right now around 46,000 homes for sale Much higher compared to one year ago but Basically on par with uh the same time Frame in 2022 but of course higher Compared to 21 uh 20 but much less than Compared to preo levels back in late September we had around 63,000 homes for Sale in California now again here we Only have about 46,000 so again higher than last year Basically on par with 2022 of course Higher compared to 20 and 21 but still Have fewer homes for sale compared to 2019 Arizona different animal Arizona Has more homes for sale than any other Week going back to at least 2019 look at Florida in Florida they Have the highest number of home sales For any week since at least September 27th of 2019 so inventory absy skyrocketing in
Uh Florida around 84,000 homes for sale One year ago only 52,000 at the same time frame in 22 51,000 now there's approximately what Over 30,000 more homes for sale than the Peak of 2022 at least during the same Time frame so inventory exploding in Florida same goes for Texas I mean Texas Has far more homes for sale compared to Pre-co 114,000 homes for sale 2019 only 95,000 much different compared to California where we have a lack of Houses for sale historically speaking it Just goes to show how every housing Market's different inventory piling up In Florida and Texas whereas in California uh even though we're up Compared to one year ago we still have Far fewer uh looking at 2019 with that said if you guys got any Value of today's video then please hit Like button also if you guys want a real Estate h referral anywhere in California Or Nationwide check out my website which Is real estate TEF finder.com or if You're looking to buy or sell house in The greater Sacramento area um please Email me at Jasonjason walter.com I'll provide a Link in the video description below for That and of course you can go to my U my Website as well for that as well hope You guys have an awesome day thank you
So much for watching today's video if You guys are still watching today's Video here's a virtual high five I Appreciate so much have an amazing day I I look forward to seeing you on the next Video [Music]
