The 2022 real estate cool down hit most of California in June, as sale prices dropped throughout much of the state.
According to data from the California Association of Realtors, the median sale price of a single family home in the state dropped 4% in June compared to May. The biggest drop was seen in the Bay Area, where the median sale price was down 7%.
Median sale price drops are fairly common this time of year. And the median sales price in the state of $863,790 is up 5.4% since June of last year. However, the month-over-month decline was among the largest going back to the great recession, when monthly price drops often hovered around 5% or more, according to CAR’s historical data.
Most of the Sacramento region saw price drops in June. Sacramento County’s median sale price of $560,000 was 3.4% lower than the previous month. Placer County prices were down 2% between May and June and El Dorado County saw a 1.9% drop.
There were a few pockets of price growth in California, including some within the Sacramento region.
Yolo County’s median sales price of $667,500 was a 1.1% increase over May. Prices in Nevada County were up 5.4%, while the median sale prices in both Yuba and Sutter counties were roughly equal to what they were in May.
A handful of other Central Valley counties saw prices tick up in June over May, including Fresno, Stanislaus, San Joaquin and Tulare. Los Angeles saw a jump in median prices of 7.7%.
Year over year sales traffic was also down significantly in the state in June. Experts say that’s a result of buyers becoming more patient and picky as mortgage rate hikes add hundreds of dollars to monthly payments.
For the first time since before the pandemic hit, there are more than two months of available inventory in the Sacramento region real estate market, according to data from local appraiser and market analyst Ryan Lundquist.
“We’ve seen a massive change with housing inventory,” Lundquist wrote on his blog last week.
Lundquist’s data also show that roughly 47% of listings in the region have a price reduction.
Even with the market cooling down, California still has the most expensive real estate in the nation, according to Redfin.
This story was originally published August 2, 2022 5:00 AM.