California home prices are holding steady as high interest rates test the housing market according to the California Association of Realtors.

Persistently high mortgage rates continue to test California’s housing market as home sales fell for the fourth consecutive month in September, while the median price rose from the year-ago level for the third straight month to record its largest year over year gain in more than a year.

The President of the California Association of Realtors Jennifer Branchini says, “With the market being less competitive, there are greater opportunities for consumers who need to purchase a home for personal reasons or those who can qualify to purchase at today’s interest rates. More sellers are making concessions as homes are taking longer to sell, fewer homes are selling above asking price, and there are more homes to choose from.

IF HOMEBUYER DEMAND IS SO WEAK, WHY AREN’T HOME PRICES FALLING?

Home prices vary across California, but markets may follow the same trend. Several areas are in the early stages of transitioning from a seller’s market to a more neutral setting though homes remain expensive for most buyers.

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Mark Danforth Lomas

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