IE Business Daily Business news for the Inland Empire.
California’s existing single-family home sales are expected to drop 7.2 percent in 2023, according to a study released last week.
Sales will drop from 359,220 projected units this year to 333,450 units next year, the result of a “modest” recession brought on by “stubborn” inflation, the California Association of Realtors predicts in its 2023 state housing market forecast.
The state’s median home price will also decline 8.8 percent to $758,600 in 2023. One year ago, the Los Angeles-based trade association was projecting a 5.7 percent increase, to $831,460.
Housing affordability – the percentage of households that can afford to buy a median-priced home – will drop from 19 percent to 18 percent.
“Buyers and sellers are adapting to the new realities of the market,” said Otto Catrina, association president, in the statement. “As sellers adjust their expectations, well-priced homes are still selling quickly. For buyers: more homes for sale, less competition, and fewer homes selling above asking price all point to a more favorable market environment.”
