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California Housing Affordability Reaches Highest Level in a Year
Retreating home prices and slightly lower interest rates improved the outlook for more California homebuyers in the first quarter of 2023, as the state’s housing affordability rose to the highest level in a year, the California Association of Realtors (C.A.R.) reported.
Looking ahead, C.A.R. also announced it has revised its 2023 Housing Market Forecast and projects existing single-family home sales to reach 279,900 units in 2023, a decline of 18.2% from 2022.
Although home prices in general are expected to improve in the second half of the year, the California median home price is projected to decrease 5.6% to $776,600 in 2023, down from the annual median of $822,300 recorded in 2022, according to C.A.R.
The updated projection on the statewide median price, however, is an increase from the estimate of $758,600 forecast last October. C.A.R. also projects the 30-year fixed mortgage interest rate to average 6.3% for the year.
- ◦Economy
