#United States #Sacramento #Home Sales #C.A.R. #California Housing

California Home Sales Show Positive Trend in September

September proved to be a notable month for California’s housing market, as it witnessed a rebound in existing, single-family home sales. According to data from the California Association of Realtors (C.A.R.), a total of 277,410 homes were sold at a seasonally adjusted annualized rate, a 5% increase from the previous month and an impressive 6.6% increase from September of last year.

This upward trend comes after five consecutive months of declines in year-over-year sales, providing a fresh sense of optimism for both buyers and sellers in the Golden State. Heather Ozur, a REALTOR® based in Palm Springs, noted that the recent stabilization in mortgage rates, particularly their drop to the lowest point since October of the previous year, has likely contributed to this revival. Although rates have seen a slight uptick, they remain within the low 6% range. Ozur added, "It’s great to see home sales bounce back in September to their highest level in seven months."

In September, the median home price across California stood at $883,640, reflecting a 1.7% monthly decrease but an annual 1.8% increase compared to the same month last year. This monthly dip aligns closely with California's long-term average decline between August and September, which is around 1.8%. Despite this monthly decrease, the median price demonstrates resilience, indicating ongoing demand in specific market segments.

Jordan Levine, C.A.R.’s Senior Vice President and Chief Economist, mentioned that while the housing market exhibited modest improvements, the broader economic landscape remains a concern. He stated, "Steady mortgage rates may give demand a small boost heading into the fourth quarter, but broader economic uncertainty—like the ongoing government shutdown and renewed U.S.-China trade tensions—will likely keep the recovery gradual."

Regional Performance

At a regional level, all major areas in California reported year-over-year sales gains. Notably, the Central Coast led with an 11.8% rise, followed closely by Southern California with 11.3% and the Central Valley at 10.2%. These regions' positive performance suggests that certain markets are rebounding more strongly than others.

Out of the 53 counties monitored by C.A.R., 40 experienced year-over-year sales increases in September, with over half (25 counties) achieving double-digit growth. Kings County made headlines with a phenomenal 46.3% growth, followed by Calaveras County at 42% and Santa Cruz County at 37.9%. Conversely, some counties faced challenges, with Trinity County suffering the steepest annual sales decline at -50%.

Inventory Insights

The Unsold Inventory Index (UII) fell to 3.6 months in September from 3.9 months in August. This suggests tightening inventory levels as home sales increase; however, total active listings have now risen for 20 consecutive months. The annual growth rate has slowed, marking the smallest increase since February 2024, indicating that while supply leans towards buyers, market momentum is gradually easing as the fourth quarter approaches, which typically experiences a seasonal slowdown.

The median time required to sell a California single-family home increased to 32 days in September, compared to 24 days a year prior. Furthermore, the statewide sales-price-to-list-price ratio was recorded at 98.2%, indicating that homes are selling slightly below their original asking prices, reflecting a balanced negotiation power between buyers and sellers.

As per C.A.R.'s assessment, the stability in both prices and mortgage rates could encourage previously hesitant buyers to return to the market, enhancing activity as economic conditions potentially improve. This notion resonates with the overall sentiment in the housing industry as stakeholders remain cautiously optimistic about the upcoming months.