California Housing Market Update August 2023: House Prices & Trends


California’s August housing market by the numbers:

  • The median home price across California in August reached $859,800, reflecting a 3.3 increase compared to July and a 3.0 percent rise from August 2022.
  • Single-family home sales totaled 254,740, marking a 5.3 percent decline from July and a 19.0 percent drop from August 2022.
  • The median number of days it took to sell a single-family home was 18 days compared to 23 days in August 2022.
  • By the end of August, year-to-date statewide home sales had decreased by 29.2 percent compared to the same period last year.

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California’s housing market update for August 2023

California’s real estate market experienced a mixed bag of results in August, as existing, single-family home sales faced challenges and median home prices continued to rise, according to the California Association of Realtors.

Despite rising mortgage rates and a persistent shortage of available homes, the statewide median home price reached $859,800 in August. This was a 3.3 percent increase from July and a 3.0 percent gain from last August. Notably, this median price was the highest in 15 months and the highest since California’s peak in May 2022 when it reached $893,200.

C.A.R. Senior Vice President and Chief Economist Jordan Levine emphasized that despite the unsettling figures, the market should start improving in the last quarter of the year.

“While rates may remain elevated for a little longer, macroeconomic fundamentals are expected to soften starting in the last quarter of this year. Mortgage rates should begin to ease, and provide a much-needed boost to both the supply and the demand slides of the housing market,” Levine said.

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What’s happening in the California housing market at the regional level?

When it comes to the various regions across the Golden State, the real estate market continued to showcase a range of trends in August 2023.

Here’s a closer look at the median home prices and their month-to-month (MTM) and year-to-year (YTY) percentage change across California.

Median Sold Price of Existing Single-Family Homes & Sales

State/Region/County Aug. 2023 July 2023 Aug. 2022 Price MTM% Chg Price YTY% Chg Sales MTM% Chg Sales YTY% Chg
Calif. Single-Family Home $859,800 $832,400 $834,740 3.3% 3.0% -5.3% -18.9%
Calif. Condo/Townhome $657,000 $645,000 $620,000 1.9% 6.0% 12.2% -14.6%
Los Angeles Metro Area $792,500 $790,000 $765,000 0.3% 3.6% 9.3% -13.4%
Central Coast $950,000 $985,000 $950,000 -3.6% 0.0% 1.0% -17.9%
Central Valley $485,000 $489,000 $470,000 -0.8% 3.2% 4.0% -19.0%
Far North $369,000 $375,000 $378,000 -1.6% -2.4% 0.7% -15.7%
Inland Empire $569,990 $575,000 $565,500 -0.9% 0.8% 10.8% -15.7%
San Francisco Bay Area $1,260,000 $1,255,000 $1,200,000 0.4% 5.0% 4.3% -18.3%
Southern California $830,000 $830,000 $795,000 0.0% 4.4% 7.9% -13.9%
Source: California Association of Realtors (C.A.R.)

The Central Valley region recorded the steepest sales decline at 19.0%, followed by the San Francisco Bay Area at 18.3%. However, the San Francisco Bay Area and Southern California saw price gains of 5% and 4.4%, respectively, from the previous year. This validates the complex dynamics at play in the California housing market.

In terms of affordability, the Far North region claims the top spot in California with a median home cost of $369,000 in August. In contrast, the tech-centric region of San Francisco Bay predictably recorded a median home price of $1,260,000 last month.

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Is it a good time to buy a house in California?

Making the decision to purchase a home in California is a deeply personal one, influenced by many factors, including your goals, financial means, job stability, and lifestyle preferences. And while California’s real estate prices have continued their upward trajectory for years, if your dream is to call the Golden State home, it remains a good investment opportunity.

So when you are ready to make a home purchase in California, securing the right home loan is an essential part of the process. Start by comparing lenders and find the best financing option tailored to your needs. Simply complete this form and we’ll introduce you to some helpful lenders.

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