According to the California Association of Realtors, California's March 2023 home sales pace was down 1.0 percent on a monthly basis from 284,010 in February 2023, but down 34.2 percent from a year ago, when a revised 427,040 homes were sold on an annualized basis. Sales of existing single-family homes in California remained below the 300,000-unit pace for the sixth consecutive month.
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 281,050 in March 2023. The statewide annualized sales figure represents what would be the total number of homes sold during 2023 if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
"Despite a dip in March home sales, the competitiveness in the housing market continues to heat up, as homes are selling faster, and the sales-to-list-price ratio is improving, all the while when the number of homes available for sale continues to tighten," said C.A.R. President Jennifer Branchini. "All signs point to a market with solid demand, which should help bolster sales through the homebuying season."
California's median home price grew for the first time in seven months in March, increasing 7.6 percent from February's $735,480 to $791,490. March's price also was lower on a year-over-year basis for the fifth consecutive month, declining 7.0 percent from the revised $851,130 recorded last March. With home prices rising more sharply than the normal seasonal pattern last year, the market could see larger year-over-year price drops as it moves through the spring home-buying season.
"While home sales continue to hover below the 300,000-unit annualized pace, the market seems to have weathered more aggressive rate hikes and banking failures quite well in the last few weeks," said C.A.R. Vice President and Chief Economist Jordan Levine. "If interest rates stabilize or even improve in the next couple of months, home sales should rise during the spring home-buying season, but tight inventory will prevent a rapid rebound."
C.A.R. March 2023 Housing Data Key Points