An estimated 33,866 new and existing homes and condos were sold across the state of California in September 2018, down 21.9% from August 2018 and down 17.2% from September 2017, according to Corelogic data. This marks the lowest number of monthly home sales for September in 11 years.
The annual sales decline is also the largest for any month in nearly eight years, since sales fell 23.3% in October 2010. Sales have fallen year-over-year in four out of the last five months, with only a 1.2% gain in July. The state median sale price’s annual gain of 4.1% in the same month was also the lowest for any month since June 2016.
The Golden State’s housing slowdown stems not from a lack of underlying demand, given current economic and demographic trends, but from affordability constraints and a gradual shift in buyer psychology. The sense of urgency among many would-be buyers subsided in recent months as sales slowed and listings rose.
Inventory – especially more affordable inventory – remains relatively tight in some markets but many areas have transitioned from a seller’s market to a neutral market where neither buyers nor sellers have a distinct advantage.
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