News Summary
California’s housing market sees a sharp 8.4% drop in pending home sales year over year, the largest decline since October 2023. High housing costs, weather conditions, and severe wildfires are contributing to this downturn, while a surprising rise in mortgage-purchase applications indicates potential buyers are still interested. Experts offer mixed predictions for the market’s future, with potential increases in sales and home prices by 2025.
Pending Home Sales in California Take a Hit: What’s Going On?
As we settle into the new year, many in California are keeping a close eye on the housing market that seems to be ever-changing. Recent reports indicate that pending home sales have plummeted by 8.4% year over year for the four weeks ending January 12. This sharp decline marks the largest drop since October 2023, raising eyebrows among homeowners and potential buyers alike.
Why Are Sales Falling?
Several factors contribute to this significant dip in pending sales. First, the ongoing issue of high housing costs is making it hard for many prospective buyers to enter the market. As the median housing payment in the U.S. has reached its highest level in over two months at around $2,586 a month, buyers are feeling the strain on their budgets. The median sale price sits at about $379,609, which doesn’t make things any easier.
Adding to the woes are environmental factors that are influencing buyer behavior. The devastating wildfires across California not only affect property values but also discourage potential buyers from flocking to areas that are still recovering. In fact, in Los Angeles alone, pending sales fell by 4% year over year, accompanied by a 2.5% drop in new listings as residents grapple with the aftermath of these terrible fires.
Weather Woes and Buyer Decisions
Compounding these challenges is the severe winter weather that has swept through parts of the Northeast, Midwest, and South. Bitter cold and heavy snow are keeping homeowners from listing their properties and potential buyers from venturing out to visit available homes. Conditions are making it difficult for the market to rebound as more folks are forced to stay cozy at home rather than explore new housing options.
A Glimmer of Hope?
What About Listings?
Looking Ahead
Conclusion
Deeper Dive: News & Info About This Topic
- Realtor: California Housing Market Slow Sales
- Business Insider: Housing Market Predictions
- Newsweek: California Housing Market Update
- Norada Real Estate: States Facing Housing Market Crash
- PR Newswire: Housing Markets Facing Downturns
- Wikipedia: Housing Market
- Google Search: California Housing Market News
- Google Scholar: California Housing Market
- Encyclopedia Britannica: Housing Market
- Google News: California Housing
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
