"Let's start at the car lot. The association estimates that California dealers will sell 1.79 million vehicles in 2025, a 2% increase from 2024, following a 1% decline in 2024. Politely, that's flat. Next, you see home sellers aren't faring much better. If current sales continue through the year's first eight months, 317,000 California residences are expected to be purchased in 2025. That would be down 2% in a year after a 5% increase in 2024."
"Affordability is another challenge for both big-ticket purchases. Prices go skyward. The typical new car price topped $50,000. And California is home to more high-priced ZIP codes than any other state. Additionally, interest rates are burdensome for consumers who typically finance these expensive purchases. A five-year car loan ran 7.9% at mid-year 2025, according to the Federal Reserve. That's up from 4.5% in 2022."
California new-vehicle sales are estimated at 1.79 million in 2025, a 2% increase from 2024 after a 1% decline, signaling near-flat auto demand. Home purchases are projected at 317,000 in 2025, down 2% year-over-year following a 5% rise in 2024. Consumer confidence has fallen as hiring and wage growth stall and inflation reduces household purchasing power. Affordability pressures include typical new-car prices above $50,000 and numerous high-priced ZIP codes across the state. Financing costs have risen sharply: five-year car loans near 7.9% in mid-2025 and 30-year mortgage rates around 6.8%.
Read at The Mercury News
Unable to calculate read time
Collection
[
|
...
]