What is happening

The housing market is slowing with sales declining and home prices softening. Home sales in California dropped 31.1% year-over-year in July 2022 and last month was the third consecutive month with sales falling more than 10% from a year ago. Prices also began to moderate in the past couple of months after the statewide median price set a record high in May. The July median price of $833,910 in California was the lowest in five months and the less than 3% year-over-year growth rate was the smallest gain in the past 25 months. With rates rising and the economy slowing, the downward shift in the housing market will continue as the year approaches its holiday season.

Reason 1: Housing supply to stay low

Housing supply has been on the rise but will level off in the fall of 2022 as seasonality kicks in. Inventory will be at a level higher than what it was a year ago, but supply for the rest of the year will remain below the norm by historical standards. Also, housing inventory rises but is not due primarily to a rush in new listings.

Reason 2: Drastic price drop for Single Family Residence (SFR) is unlikely

In addition, mortgage market fundamentals are much better than what they were during the 2008 financial crisis, which will help prevent another foreclosure crisis. As such, tight supply market conditions will continue to provide support to keep housing values from falling too fast. I put a chart together to show the year-over-year growth. Despite the reduction in the rate of growth, the median price is still rising and not dropping.

Median Price Comparison Year-over-Year (as of August)

Source: California Association of REALTORS®

Reason 3: Rising mortgage rate

With more sellers reducing their prices in recent months, some buyers may delay their home-buying decision until next year as they wait for prices to fall further. While the price of a property is an important variable to consider when buying a home, interest rates should be an equally important factor to take into consideration when buying a property with a home loan. Mortgage rates are near their highest level in almost 14 years and will likely climb further as inflation remains elevated. The average 30-year fixed rate mortgage could rise above 6.5% by the year-end and could inch up closer to 7% by mid-2023. Buyers waiting for prices to fall could end up paying more on their monthly mortgage payments because of the higher interest rates.


A buyer who purchased a median-priced home and financed it at the July’s prevailing 30-year fixed-rate of 5.41% with a 20% down payment would have a mortgage payment of $3,750. If the buyer were to wait and purchase the same property next year with a price drop of 10% and finance it with a 30-year fixed-rate that is one percentage point higher than today’s rate, the mortgage payment would turn out to be $10 higher.

CA Median Price (July 2022) % off Median Price (July 2022) 30 Yr. Fixed Rate Mortgage (FRM) Monthly Mortgage Payment Difference in Mortgage Payment
$833,910 0% 5.41% $3,750 N/A
$792,215 5% 5.91% $3,760 $10
$792,215 5% 6.41% $3,970 $220
$750,519 10% 5.91% $3,570 -$180
$750,519 10% 6.41% $3,760 $10

DO think long-term about your home purchase.
DON’T forget to plan for how your home may work if circumstances change.

Hire Me.

Get a personal consultation.

Call me today at (909) 348-2278

I received support and help from many great people when I was new to the industry, in fact when I was new to the country. I want to give the same kindness back to people looking for help. Please do not hesitate to bring up any questions.

Why should you hire me?

Am I the best Realtor®? No.

There are many seasoned professionals in the field who have established successful careers. If you were to compare me directly to them, I might not come across as superior. However, what sets me apart is my unwavering commitment to achieving the best results. I’ve built myself and my assets from the ground up, and I possess the adaptability required to navigate any situation while upholding my core values and integrity.

Will I work hard to get the best results for you? Absolutely, yes.

I am the epitome of flexibility, ready to tailor my services to your unique needs and schedule. Your way of working becomes my way of working, and I promise to deliver the most favorable outcomes for your real estate transaction. These aren’t just words; they are my pledge to you.

3% of the gross commission goes to your selected charity.

I am deeply committed to giving back to society and supporting the community. I have meticulously chosen two charitable organizations in each of the following categories: Domestic Needs, Education, Environment/Animal, Health, and Medical. After your transaction concludes, you can select one of these organizations, and I will ensure that 3% of my gross commission is donated to your chosen charity.

Domestic Needs

feeding America logo
the salvation army logo


step up for students logo
teach for America logo


the nature conservancy logo
the humane society of the united states logo


American cancer society logo
American heart society logo


st jude children's research hospital logo
City of Hope Logo