Although the macroeconomic headwinds continue to rise, California’s economy and housing market have yet to slow their upward trajectory. Home sales remain strong, new listings are increasing, and the market remains competitive. Demand is expected to be impacted by higher rates in the second half of the year, but, thus far, California’s residential market is holding up remarkably well.
The state of California has been one of the strongest markets in the US for housing and real estate in recent years. Despite concerns about an impending recession, the market has yet to see a significant slowdown. In fact, home sales have remained strong, new listings have increased, and competition among buyers remains high.
Despite rising interest rates, buyer demand has yet to downshift in California. Home sales likely rose in March from February’s pace and several indicators showed a market that was even more competitive that it was in February with 71% of homes selling above asking prices and the typical home going from list to pending is just 8 days. In addition, the latest survey of REALTORS® suggests that few agents are experiencing buyers putting their search on hold or backing out of existing deals. Many would-be home buyers may be feeling a sense of urgency to complete their purchase before rates rise further, which is keeping the market tight so far.
Looking forward, it will be interesting to see how California’s housing market fares in the face of continued macroeconomic headwinds. For now, the state remains a strong market for both buyers and sellers.
Source: California Association of Realtors