California’s Housing Market Crisis
Did you know? Behind Texas, Arizona is the 2nd most popular relocation destination for those leaving Cali? As we observe real estate trends across the U.S., today’s post is on California’s housing market. There’s been MUCH BUZZ about it lately. Not in a good way. Right now, California’s housing market is facing a CHALLENGING time. Specializing in Arizona luxury real estate, we understand what people are going through. Some of the agents at our brokerage even relocated from The Golden State. Bottom line is this, there is an issue. Arizona? It helps solve it. No that we gave our pitch, let’s discuss the latest drama.
California’s Downward Housing Market
California’s housing market has seen SIGNIFICANT DOWNTURNS recently. Let’s break down the key stats:
- Price Correction: The state has experienced a market correction similar to the broader U.S. housing market between late summer 2022 and spring 2023.
- Dropping Median Sale Prices: The median sale price for homes in October was $840,360, down from $843,360 in September.
- Existing Home Sales: There was a modest increase of 0.3 percent in home sales in October, but it was 11.9 percent lower compared to October 2022.
- Population Decline: California’s population fell below 39 million, the lowest since 2015.
Also Read: Why Are Californians Moving To Arizona?
California’s Housing Market Is Causing Many To Relocate
Impact On Urban Areas & Future Projections
Major cities in California are facing the BRUNT of these changes:
- Significant Price Drops in Urban Centers: Cities like San Francisco have seen substantial drops in property values.
- Variable Condo Prices: In downtown San Francisco, condo prices have fallen, but remain higher in other parts of the city.
- Property Value Reductions: Some properties have seen major price reductions after lengthy periods on the market.
Migration Patterns & Demographic Shifts
California’s changing population is a CRITICAL part of this story:
- Outmigration: From July 2022 to July 2023, about 338,000 more people moved out of Cali than moved into Cali (from other states).
- Net Population Change: The state saw a net loss of people, with a notable number relocating to Texas and Arizona.
- International Migration: California had a significant influx from international migration, partly offsetting the domestic loss.
Also Read: Only 15% Of Californians Can Afford A Median-Priced Home!
Californians Are Fleeing To Texas (#1) And Arizona (#2)
Arizona’s Position Amidst California’s Shift
For us in Arizona, these developments are particularly RELEVANT:
- Growing Influx from California: Arizona is increasingly becoming a preferred destination for those leaving California.
- Leveraging Opportunities: Understanding these shifts helps us anticipate and cater to the needs of new residents coming from California.
How We Help Californians
The California housing market is undergoing a severe downturn, affecting prices and sales. Not to mention a POPULATION change. As a boutique brokerage in Arizona, we help many Californians relocate. We get what is going on. And we enjoy helping people LIVE BETTER LIVES. From homes on the golf course to urban condos in Scottsdale, we know the market. Our market is nuanced. The lifestyle of which you’ll find in Buckeye is far different than that of Paradise Valley. Living in North Scottsdale is FAR DIFFERENT than living in Old Town Scottsdale. You get the point. Should you have any questions, feel free to reach out. Also, here on LUXE BLOG, we’re constantly posting helpful info. From stats to rare properties, you’ll find it here. Thanks for reading until the end.
Also Read: The Top Reasons Why People Choose Arizona Over California