Mortgage rates reach highest level since November. The average 30-year fixed-rate mortgage rose to 7.24% on August 14, 2023, the highest level since November 2022. This is due to several factors, including rising inflation and the Federal Reserve’s efforts to combat inflation by raising interest rates.
- Housing affordability lowest since 2007. The share of households in California that can afford to buy a typical single-family home dropped to 16% in the second quarter of 2023, the lowest level since 2007. This is due to the combination of rising home prices and mortgage rates.
- Home sales and prices decline. Home sales in California declined by 32.9% year-over-year in July 2023. The median home price also declined by 0.3% month-over-month. This is a sign that the California housing market is starting to cool down.
- Real estate agents adjust marketing strategies. Real estate agents in California are adjusting their marketing strategies to account for the changing market conditions. They are focusing more on digital marketing and are using more data-driven tools to target potential buyers.
Overall, the California real estate market is starting to cool down. This is due to several factors, including rising interest rates and affordability concerns. However, the market is still expected to remain strong in the near future.
Here are some tips for real estate marketers in California:
- Focus on digital marketing. Digital marketing is a cost-effective way to reach a large number of potential buyers. Use social media, search engine marketing, and email marketing to reach your target audience.
- Use data-driven tools. Data-driven tools can help you target potential buyers more effectively. Use tools like lead scoring and predictive analytics to identify the most likely buyers.
- Be flexible. The market is constantly changing, so be prepared to adjust your marketing strategies accordingly.
- Stay positive. The California real estate market is still expected to remain strong in the near future. Stay positive and keep marketing your listings.
Darren Babby – DRE #01912000