Falling mortgage rates are having an effect in California, where sales of existing homes rebounded in July to a five-month high, according to the California Association of Realtors.
The CAR reported a seasonally adjusted annualized rate of 279,810 closed escrow sales of existing, single-family detached homes for July in the Sunshine State. The annualized sales figure represents the number of homes that would be sold during 2024 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The CAR collected data from more than 90 local REALTOR associations and MLSs statewide.
July’s annualized sales pace rose 3.6% from the revised 270,200 homes sold in June and was up 4.1% from a year ago, when the revised annualized total was 268,840 homes. The sales pace has remained below 300,000 for 22 consecutive months. Year-to-date home sales increased 0.2% from the first seven months of 2023.
“California’s housing market kicked off the second half of the year with a moderate increase in home sales in July as interest rates continued their downward trend,” said CAR President Melanie Barker. “Despite transitioning into the off-season, the market should remain vibrant in the coming months if the availability of homes for sale continues to improve, and mortgage rates moderate further in the third and fourth quarters.”
The median price of homes in California declined in July for a second month after setting a record in May. July’s median price was down 1.6%, from $900,720 in June to $886,560 in July. The median home price in California was 6.5% higher than the $832,530 recorded in July 2023 The CAR reported that home prices could decline further in coming months but should continue to register moderate year-over-year growth for the rest of the year.
Contributing to the median price growth was strong sales momentum in the higher-priced market segment. The $1 million-and-up segment rose year-over-year in July by 24.5%, while sales in the under-$500,000 segment were down 1.6%. Sales of $1 million-plus homes declined for the second straight month but made up 35.4% of all sales in July.
Home sales bounced back in July and were higher year over year in all major regions, except for one. The San Francisco Bay Area increased the most, 19.2%. That was followed by Southern California (11.4%) and the Central Valley (10.3 %) regions, which also grew by double-digits year-over-year.
