California homebuying fell to its second-lowest level for a November in 21 years, despite mortgage rates at their lowest in three years.<\/p>\n
Statewide, 23,317 existing and newly built homes \u2014 houses and condos \u2014 were sold, according to Attom data dating to 2005. This broad tally of sales is down 8% over 12 months and 30% below average.<\/p>\n
It\u2019s no short-run slip. Sales over the past three years averaged 26,428 per month \u2013 31% below the pace of the previous 18 years.<\/p>\n
Contemplate the economic swings behind the sales collapse.<\/p>\n
Mortgage rates averaged 6.3% in the three months ended in November, according to Freddie Mac. That\u2019s down from 6.5% a year earlier and the recent peak of 7.4% in November 2022, when the national economy was overheated.\u00a0Previously, rates tumbled to 2.73% in January 2021 when coronavirus darkened economic prospects.<\/p>\n
In affordability-challenged California, why didn\u2019t the year-end rate dip boost sales?<\/p>\n
Well, cheaper financing can be tied to a\u00a0wobbly business climate. Economic uncertainty is not good for homebuying.<\/p>\n
The price is wrong<\/p>\n
Plus, California\u2019s pricing remains stubbornly high.<\/p>\n
The $735,000 median sales price for November was up 0.3% in a year and sits just 2% below the $751,000 peak set in June 2025.<\/p>\n
The good news for house hunters is that appreciation has cooled. Home prices are up 9% during the past three years vs. 32% gains in 2019-2022.<\/p>\n
Payment pain<\/p>\n
Who\u2019s got $3,632 a month to buy a home?<\/p>\n
That\u2019s an estimated mortgage payment a buyer would get at November\u2019s median price \u2013 even with the cheapest rates since 2022.<\/p>\n
Yes, California\u2019s buying burden is 9% below its peak in June 2024. However, payments are also up 94% over the past six years.<\/p>\n
This math does not include other recurring ownership costs, such as property taxes, insurance, maintenance, or association fees.<\/p>\n
Also, keep in mind the $147,000 down payment needed to make this deal work.<\/p>\n