Analyzing California’s Frozen Homebuying Market: A Numerology Perspective

The California housing market is experiencing a deep freeze as homebuying remains at near-record lows, with the typical buyer facing a monthly house payment of $4,332, a new high. Despite a recent uptick in sales volume, the overall trend is sluggish, with purchasing down 20% over the past year and 34% since the start of the pandemic.

The high cost of homes in California is a major factor contributing to the slow pace of sales, with the median home price reaching $838,260 in June, the sixth-highest on record. Rising mortgage rates, which have increased significantly over the past year, have further impacted buyers’ purchasing power, making it difficult for many to afford a home in the current market.

The lack of inventory is also a significant issue, with supply at just 2.2 months of sales in June, well below the 33-year average. The move-up market, where existing homeowners typically sell their homes to buy a new one, is virtually non-existent due to the high prices and rates.

Despite these challenges, the strong job market in California continues to support homebuying activity, with unemployment at 4.6% in June, lower than the historical average. However, recent cooling in hiring trends could pose additional challenges for the housing market in the coming months.

Overall, the key factors influencing the California housing market remain jobs, affordability, and inventory levels. As buyers continue to face high prices and rising rates, the future of the housing market remains uncertain.