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

California Home Sales Surge in November 2024

California's housing market demonstrated resilience in November 2024, boasting the largest yearly increase in existing home sales since June 2021. The California Association of Realtors (C.A.R.) reported that the state's existing single-family home sales reached 267,800, reflecting a seasonally adjusted annualized rate. This result marked a 1.1% increase from the previous month and an impressive 19.5% rise compared to the same month last year. However, despite this upturn, sales are still significantly below the pre-COVID benchmark of approximately 400,000 units.

In terms of pricing, the statewide median home price saw a decline of 4% month-over-month, dropping to $852,880 in November. Despite this decrease, prices are up 3.8% year-over-year from the previous November's median of $821,710, highlighting mixed signals in the market.

Year-to-Date Trends and Inventory Growth

So far in 2024, home sales in California have recorded a modest increase of 3.1% over the previous year. The encouraging growth in sales comes against a backdrop of elevated mortgage rates, which have remained a challenge for buyers. Nonetheless, the gradual rise in housing supply indicates potential for further market improvement as we head into 2025.

Heather Ozur, the 2025 C.A.R. President, commented, "Although mortgage rates are still high, home prices are rising at a moderate pace and housing availability is increasing. This trend points to optimistic signs for buyers in the upcoming year."

Regional Performance Highlights

Across the major regions of California, home sales showed solid year-over-year improvement with the Central Coast region leading the pack with a remarkable 21.7% increase. Other notable regions include:

• - Central Valley: +17.1%
• - San Francisco Bay Area: +14.0%
• - Southern California: +8.7%
• - Far North: +5.2%

Four out of the five key California regions saw median prices increase compared to last year. The Central Coast recorded the largest gain at 7.9%, followed by the Bay Area's 5.3%, the Central Valley at 4.3%, and Southern California at 3.1%. The Far North experienced no change in its median price.

In total, more than two-thirds of counties in California reported price increases compared to the previous year, with Santa Barbara's prices surging by an exceptional 51.9%, driven by strong demand in its high-end market. Lassen and Trinity counties also saw significant price increases of 48.3% and 37.4%, respectively. However, some counties like Del Norte experienced declines, with a notable drop of 23.9% in median price.

Unsold Inventory and Market Dynamics

The statewide unsold inventory index improved, showcasing a year-over-year increase of 13.8% due to a surge in active listings. Active listings rose nearly 27%, marking the ninth consecutive year of double-digit inventory growth, a critical factor in addressing buyer demand and market supply dynamics.

Amidst this evolving landscape, some counties, such as Sutter, saw the most significant increase in for-sale properties with a remarkable 73.7% rise. Others like San Mateo, however, recorded declines in active listings, highlighting the varied conditions across the state.

The average time taken to sell a single-family home in California was 26 days in November, extending from 21 days a year prior, reflecting a slower transaction pace influenced by market uncertainties. Additionally, C.A.R.'s statewide sales-price-to-list-price ratio stood at 99.4%, representing a mild decrease from 100% recorded in November 2023, indicating market equipoise in negotiations.

In November, the 30-year fixed mortgage rate averaged 6.81%, presenting a slight decline from 7.44% from the previous year while remaining considerably high, causing caution among buyers.

As we approach the new year, industry experts anticipate that while home prices may moderate, they are expected to pick up again in the early months of 2025, fueled by improving housing sentiment and potentially more favorable mortgage conditions. The real estate landscape in California remains dynamic, and the unfolding months will reveal how these trends evolve as the spring home-buying season approaches.