By outdoor-nature-child.com Recent reports indicate that California’s housing sales have stagnated as of September, reaching their lowest level in nine months, according to the California Association of Realtors (C.A.R.). Despite interest rates dropping to their lowest since spring, home sales in California have not picked up.
Data reveals that the number of single-family home transactions in September reached a seasonally adjusted annual rate of 253,010 units. This marks a 3.4% decline from August’s rate of 262,050 units, though it represents a 5.1% increase compared to the 240,840 units sold during the same month last year. Year-to-date sales data for the first nine months show a slight year-over-year increase of 0.9% compared to 2023.
C.A.R. President Melanie Barker commented, “As the market enters its traditional slow season, housing supply has gradually improved in recent months. With home prices likely to decline further in the coming months, the fourth quarter may present a good opportunity for potential buyers who have been holding off, especially as interest rates return to historical averages.”
The statewide median home price fell by 2.3% in September, down to $868,150 from $888,740 in August, yet it still represents a 2.9% increase compared to the same time last year. This marks the 15th consecutive month of year-over-year price increases, although the growth rate is the slowest seen since July 2023. Moving forward, prices may continue to decrease as the market enters its traditional slow season, but an annual increase is still expected.
The sales of high-priced homes continue to influence price fluctuations, although their impact on statewide median price growth has been waning in recent months. Homes priced at $1 million and above saw sales growth at a mere 3.9%, while the market for homes priced under $500,000 underperformed with an 8.6% year-over-year decline. If the proportion of homes over $1 million continues to shrink in the fall, the growth of median prices in the coming months could slow even further.
Regionally speaking, all major areas except for Central Valley and Central Coast saw home sales in September surpass last year’s levels, with the Far North region experiencing the most significant growth at 7.2%, followed by the San Francisco Bay Area (5.1%) and Southern California (1.1%).
Among the 53 counties tracked by C.A.R., 27 reported year-over-year increases in home sales, with 12 counties exceeding a 10% growth rate. Lassen County saw the steepest increase at 78.6%, followed by Siskiyou at 75.0% and Mariposa at 50.0%. Conversely, 25 counties saw sales decline compared to the previous year, with Mono County experiencing the largest drop at 50.0%.
In terms of median home prices, most major regions showed year-over-year increases in September, except for two areas. The Central Coast recorded the highest price increase at 4.6%, followed by the Central Valley at 4.0% and Southern California at 3.7%. The San Francisco Bay Area reported the largest year-over-year decline at 2.6%, with the Far North region following at 1.4%.
C.A.R. Chief Economist Jordan Levine noted that economic uncertainty and expectations of low interest rates could cause many buyers to postpone their home purchases, resulting in two consecutive months of declining sales that have reached this year’s lowest point. However, he cautioned that recent rebounds in bond yields are a reminder that interest rates will continue to fluctuate, suggesting that waiting may not be the best strategy for homebuyers.