According to the California Association of Realtors (CAR), housing demand in California continued to fall sharply as rising interest rates further dampened the state’s housing market in November 2022. California’s home sales registered the lowest annualized pace since October 2007 and the largest year-over-year sales drop in at least the past four decades.

Closed escrow sales of existing, single-family detached homes in California totalled a seasonally adjusted annualized rate of 237,740 in November, according to information collected by CAR.

The state-wide annualized sales figure represents what would be the total number of homes sold during 2022 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. November’s sales pace was down 13.2% on a monthly basis from 274,040 in October and down 47.7% from a year ago, when 454,450 homes were sold on an annualized basis. The year-to-year sales decline was the biggest since 1980.

Sales in all price segments dropped more than 40% year-over-year, with the $2m plus price segment falling the most at 47.7%. The most affordable market (sub-$300,000) experienced the smallest sales drop at 41.4%.