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CA Association of Realtors has released the November 2023 Housing Market Statistics. Most of these sales went into contract in October with a 30 day escrow to result in a November closing.
In the Los Angeles County housing market statistics the median price rose slightly .5% in November from October but is up more than 7% from same time last year according to the California Association of Realtors. Ventura County’s prices also rose slightly .4% and the median price is still amost 5% higher year to year. National headlines report falling prices but that isn’t what we are seeing in Southern California.
The total sales volume month to month dropped sharply over 15% in Los Angeles County and over 12% in Ventura County. This is strong drop is due to the mortgage rates rising to almost 8% in October coupled with the war in the Middle East and the expected seasonal drop so these results were what I anticipated. Both Buyers and Sellers moved to the sidelines taking a wait and see approach.
For November contracts = December sales the 30 year fixed interest rates dropped ranging from 7.76 to 7.22. When the statistics are released I expect sales volume to increase a little and median prices to stay about the same. I don’t expect a large increase in volume until Sellers return from the holidays and have a few weeks or more to prepare their properties for sale. Most of these sales will close 30 days later.
The drop in interest rates coupled with low supply during December should be the beginning of a shift in the market after the new year.
Rates for week ending Dec 28 were 6.61% so I think activity will pick up markedly in January. Median price will be strongly impacted by supply so the number of Sellers who come off the sidelines will determine how strongly median prices increase. There will be a lag of 30-90 days before sales volume picks up allowing for supply to increase and then escrows to close.
If we have a soft landing or no recession after the New Year and rates head hold steady at 6.5% or below I think we will see significantly more Sellers and Buyers come off the fence.
If you are thinking of buying or selling real estate in the next 6 months it is important to do your homework on what mortgage programs are available and what is the best way to get your home show ready.
Who to Call
General real estate agents are great for working on every day transactions but if you are a Senior who is downsizing, a family settling an Estate in Probate or Trust administration or a family in a Divorce you need a real estate professional trained for these cases.
For a free consultation on your home’s value, how to prepare your home to sell or the real estate market in general call me at (818)570-1144 or email [email protected] or visit https://janeybishop.com
SRES, CPE, CPRES, RCSD, CDRE
Senior Real Estate Specialist
Certified Divorce Real Estate Expert
Certified Probate Expert
Certified Probate Real Estate Expert
Real Estate Collaborative Specialist – Divorce
