SPEED LIMIT “We’re beginning to see signs of a more balanced housing market with fewer homes selling above list price and homes remaining on the market a little longer than in previous months,” said C.A.R. President Otto Catrina. “What this tells us is that there is slightly more supply, fewer and less-intense bidding wars, and those who've experienced ‘buyers' fatigue’ may now have a window of opportunity,” he said. But prices have not dropped. The June price was 1.6 percent higher than the May median price and 9.9 percent higher than June of last year. The high-end market continues to outperform the more affordable market segments. The share of million-dollar home sales in California increased for the fourth straight month and reached the highest level on record at 35.3 percent. Home prices could be leveling off though, as the monthly gain in price appears to be moderating. The June median price was higher, but only slightly above the long run average of 1.1 percent. “Pending home sales declined 30.6 percent in June—the biggest drop since the first month of the pandemic—likely due to eroding affordability, rising mortgage rates and home prices, and the increased risk of a recession,” said C.A.R. Vice President and Chief Economist 22
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Jordan Levine. “The combined effect resulted in a record increase in the average monthly mortgage payment for a typical home by more than 40 percent. With the Fed expected to raise rates further in the second half of the year, the 30-year fixed rate mortgage could surge past 6 percent by year's end and lead to more affordability challenges for potential homebuyers.” At the county level, home prices continued to rise across the state, 15 counties in California set new record median highs in June. Forty-five out of 51 counties tracked by C.A.R. increased in their median prices in June, with 31 of them rising 10 percent or more from a year ago. Here, in Butte County, prices went up over 12 percent. Houses are still selling fast and high. The average number of days it took to sell a California single-family home was 12 days in June, averaging full price. So far, analysts agree that our Real Estate market, which was speeding along like a car going 100 miles per hour, has slowed to a calmer pace of 75 or so. We’re keeping our hands on the wheel. Doug Love is Sales Manager at Century 21 in Chico. Email dougwlove@gmail.com. Call or text 530-680-0817.
