Home sales can be a good indicator of the health of the state’s economy and housing markets. Home sales have been slowing since the summer of 2018. There were an estimated 26,900 non-distressed (not resulting from mortgage delinquency or foreclosure) home sales statewide in March. This compares to 30,100 in March 2018. (This data is “seasonally-adjusted” because some months are predictably higher or lower than others.)
Home sales have been on a clear downward trend since summer of 2018. However, after several months of worsening year-over-year declines, the rate of decline seems to have stabilized at 10% to 12% in recent months. This level of decline is below the level typically seen before a recession (declines of 25 percent or more).
Date sources: Zillow, California Association of Realtors, and Moody’s Analytics, with LAO calculations.