Photo via SJV Homes.

Federal Reserve actions against inflation seem to be having their effect as September home sales and values show declines, according to new data from the California Association of Realtors.

Existing, single-family home sales totaled 305,680 in September on a seasonally adjusted annualized rate in the Golden State, down 2.5% from August and down 30.2% from September 2021.

September’s statewide median home price was, $821,680 down 2.1% from August and up 1.6% from September 2021.

Year-to-date statewide home sales were down 16.5% in September.

The four Central Valley counties have been a mixed bag of values, with Tulare County experiencing the biggest declines. Month-over-month, values declined 4.3%, though still up 4.7% year-over-year. The median home price was $335,000 in September compared to $350,000 in August. Sales volume declined significantly — 12.9% month-over-month and 15.5% year-over-year.

Fresno homes values are still climbing, but at a slower pace. The median home price was $415,000 in September, up 2.5% from August and 9.2% from September of last year. Sales volume increased 1.3% month-over-month, but is down 15.3% year-over-year.

Kings County experienced the biggest month-over-month increase, growing 6.4% to $342,500 in September. Sales volume took a hit though, dropping 8.9% month-over-month and 10.9% year-over-year.

Madera County had the biggest drop in the number of sales, declining 14.6% month-over-month and 29.5% year-over-year. Values climbed 2.5% month-over-month to $410,000 in September, up 9.3% year-over-year.

September marked the fourth month in a row that home price increases were in the single digits, according to the association.
“September’s sales and price declines reaffirm our forecast for next year,” said Jordan Levine, vice president and chief economist with the association. “High inflationary pressures will keep mortgage rates elevated, which will reduce homebuyers’ purchasing power and depress housing affordability in the upcoming year. With borrowing costs remaining high in the next 12 months, a pull-back in sales and a downward adjustment in home prices are expected in 2023.”

JP Shamshoian, president of Realty Concepts, isn’t convinced that a major drop of prices is on horizon. In his “Monthly Market Minute” feature on Instagram, he said market dynamics and the sheer number of people needing housing will keep prices from tanking.

“The only way there’s going to be a significant drop in prices is if demand drops on the buying and rental side,” he said.