Friday , October 11 2024
Breaking News
U.S. home prices record annual decline

Housing Market Forecast predicts sales will drop in 2023

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.”

Check Also

IE office market posts solid quarter

IE office market posts solid quarter

The Inland Empire office market absorbed 60,548 square feet of space during the third quarter, …

Leave a Reply

Your email address will not be published. Required fields are marked *