The California housing market shifted in May, with home sales dropping to their lowest level since June 2020 in their largest year-over-year decline in five months, according to the California Association of Realtors’ (C.A.R.) May Sales and Price Report.
Existing, single-family home sales totaled 377,790 in May on a seasonally adjusted annualized rate, down 9.8% from April and down 15.2% from May 2021, according to information collected by C.A.R. from more than 90 local Realtor associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the May pace throughout the year, and adjusted to account for seasonal factors that typically influence home sales.
Home sales dipped below 400,000 for the first time since June 2020, largely due to supply challenges and the higher cost of borrowing, with rates still on the rise.
May’s statewide median home price was $898,980 up 1.6% from April, surpassing that month’s record price of $884,890, and up 9.9% from May 2021. Year-to-date, statewide home sales were down 8.9% in May.
The share of million-dollar home sales increased for the fourth straight month and reached the highest level on record at 35.3 percent, while home sales priced below $500,000 dipped again in May and hit the lowest level of all time, according to C.A.R.
The report also noted that all major regions declined in sales from last year, with four of the five regions falling by double-digits on a year-over-year basis. The Central Coast region continued to have the biggest decline of all regions, with sales dropping 21.8% from a year ago. Also at the regional level, home prices in all major California regions increased in price from last year by more than 10% with the Far North and Southern California setting new record medians in May, C.A.R said.