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California Weekly Market Data for week ending January 29, 2024

Mortgage Rates Are Still Below 7%

While numerous homeowners currently enjoy mortgage rates below 3%, those with rates at 5% or higher will start to notice the diminishing financial disincentive for moving as interest rates gradually decline.

Pending Sales Rising Year-to-Year in January

The percentage of active listings that have reduced prices fell for the 8th week in a row last week and prices look to be on track for their 7th increase in a row when the January numbers become finalized next week.

Fewer Sellers Locked-In Below 5%

Despite a relatively low number of transactions, the sales completed in the past two years have brought more homeowners closer to current market rates, which should contribute to improving housing inventory as we approach the spring homebuying season.

Economy Remains Solid Despite Consumer Balance Sheets

Rising credit card debt, coupled with an increasing delinquency rate, suggests a potential slowdown in consumer spending, creating an opportunity for Federal Reserve officials to lower rates and benefit housing supply and demand.

New Home Sales Back Up

Despite a recent decline in single-family construction, the ongoing demand for housing in California signifies hope, motivating builders to undertake new projects and address the nationwide shortage in housing supply.

However, as the rebound in housing demand has yet to be accompanied by and equal (or greater) supply response, the market in California is quickly becoming competitive once again as fewer sellers are reducing price and the median price continues its upward trend that began last summer.

SOURCE : California Association of Realtors

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