California Excess Inventory of Homes for Sale Spikes

Sales plummet, inventory climbs and home price growth slows

Change in the real estate industry

The California Association of Realtors reports that the supply of homes for sale in California has increased significantly in recent months. Market conditions shifted with the number of homes for sale increasing and slowing home price growth. Although home prices increased from last year, current market conditions show a notable slowdown.

The median home price in California is now $829,000, up from $794,890 in January 2023, an increase of 4.3%. However, this rate of appreciation is significantly lower than the 16.8% annual increase seen in January 2022.

The number of homes for sale in California has increased by 32.8% since January 2023, with 234,081 homes on the market compared to 176,488 homes a year ago due to a decrease in buyer demand.

The number of homes sold in California has decreased by 14.3% since January 2023, with 140,904 homes sold compared to 163,673 homes a year ago. This indicates a shift in the market, with a decrease in demand from home buyers.

The median number of days on market for homes in California is now 22 days, up from 16 days in January 2023. This suggests that homes are taking longer to sell, which is consistent with a decrease in buyer demand and an increase in the supply of homes for sale.

The California Association of Realtors predicts that the housing market will continue to slow in the coming months. They forecast that home price growth will moderate, and the number of homes for sale will continue to increase.