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29% Fewer California Homes Sold. Is the Fed to Blame?
- California home sales in March 2025 dropped 29 percent compared to the 20-year average, reaching 26,454, the third-lowest since 2005.
- This decline follows the Federal Reserve's inflation battle starting in March 2022, which raised mortgage rates from 4.3 to 6.7 percent, increasing monthly payments by 40 percent.
- Although median home prices remained near the peak of $750,000 reached in May 2024, just 17 percent of California households were able to afford a home in early 2025, a decline from 32 percent six years prior.
- Lawrence Yun of the NAR said the market has had 75 percent of normal activity despite job gains, and Danielle Hale noted mortgage rates held near 6.6 percent in March and April.
- The sales drop and affordability gaps suggest homebuying remains frozen, with experts noting the market may require 36 percent price cuts or major rate and wage changes to improve conditions.
12 Articles
12 Articles
Daily Breeze
29% fewer California homes sold. Is the Fed to blame?
California homebuying hasn’t been the same since the Federal Reserve’s war on inflation began three years ago. That’s what my trusty spreadsheet found in the March homebuying report from Attom, which tracks the closed sales of existing residences and new construction, both houses and condos, dating to 2005. The Fed’s efforts to cool an overheated economy with pricier financing began in March 2022. It totally iced home sales. For example, March 2…
Home sales drop to lowest April level since 2009 - ABC Columbia
(CNN)– The Spring home buying season is off to a slow start. The National Association of Realtors says existing home sales fell half-a-percent last month. That’s the slowest April pace since 2009, according to the new data. Home sales were 100,000 below expectations, and April sales were down 2% compared to a year ago. Inventory is up, but potential home buyers face high prices and mortgage rates near 7%. Mortgage rates climbed to their highest …
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