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California’s home sales during December remained near the 16-year low reached in November while sales for the full-year 2023 experienced the steepest drop since 2007, according to data from the California Association of Realtors (CAR).

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 224,000 last month, essentially unchanged from the revised 223,940 homes sold in November and down 7.1 % from the revised 241,070 homes sold in December 2022.

CAR noted that sales of existing single-family homes in California have been below the 300,000 threshold since September 2022 and predicted they would remain below that level in the first quarter of this year.

For the year as a whole, the state recorded an annual sales level of 257,630 in 2023, a decline of 24.8% from the revised sales level of 342,530 reported in 2022 – this marked the biggest drop in existing home sales in California since 2007.

California’s statewide median price dipped 0.3% from November’s $822,200 to $819,740 in December although it soared by 6.4% from a revised $770,490 recorded one year earlier – this marked the largest year-over-year gain since May 2022. For 2023 as a whole, California’s median home price slipped 0.6% to $813,980 from 2022’s $818,900 figure, but CAR is forecasting it will climb to $860,300 in 2024.

Unsold inventory statewide decreased 16.7% on a month-over-month basis and dipped by 3.8% from December 2022. New active listings at the state level were down from a year ago for the 18th consecutive month, but the annual decline remained below 3% for the second month in a row.

“The housing market had a tough year in 2023 as a shortage of homes for sale and high costs of borrowing continued to have a negative impact on housing inventory and demand,” said 2024 CAR President Melanie Barker, a Yosemite realtor. “With mortgage rates expected to come down in the next 12 months, home sales will bounce back as buyers and sellers return to a more favorable housing market. Home prices should see a moderate increase in 2024 as well.”