California housing market bounces back in October as both home sales and median price post increases from previous month and year, C.A.R. reports

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 264,870 in October, according to information collected by C.A.R. from more than 90 local REALTOR^® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the October pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

October’s sales pace climbed 4.7 percent from the 253,010 homes sold in September and was up 9.5 percent from a year ago, when a revised 241,910 homes were sold on an annualized basis. The year-over-year sales pace reached its highest level in 40 months, partly because of a low sales base in 2023, when sales dropped nearly 12 percent compared to the previous year.

“Rising rates in the past few weeks have created a less favorable lending environment for the housing market, but many of the homes that went pending in August and September finally closed,” said 2025 C.A.R. President Heather Ozur, a Palm Springs REALTOR^®. “While market conditions are improving at a slower-than-expected pace, October’s bounce back in home sales suggests that there’s still solid interest from motivated buyers.”

The statewide median price climbed in October from both the previous month and year. The October median price rose 2.4 percent from $868,150 in September to $888,740 in October and 5.8 percent from a revised $839,990 in October 2023. The September-to-October price gain was the largest in 45 years, while the year-over-year price gain was the biggest pace recorded in the past three months, marking the 16^th consecutive month of annual price increases. Home prices could soften further in the coming months as the market enters the traditional off-season but should continue to register year-over-year growth for the remainder of the year.

Sales in higher-priced market segments continued to have an effect on the mix of sales, but the impact on the statewide median price growth has tapered in recent months. While the sales pace for the $1 million-and-higher price segment remained moderately low in October at 3.9 percent, sales in the sub-$500,000 market continued to underperform, dropping 8.6 percent from a year ago. Moderation in the median price growth could be observed in the coming months if the share of homes priced at or above $1 million continues to shrink in the fall.

“With the elections behind us and the Federal Reserve cutting rates again earlier this month, some buyers will take advantage of the seasonal lull and purchase before the end of the year,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “However, rates are also expected to decline only gradually, creating headwinds for consumers. Fortunately, pending sales rose by double digits in October, which bodes well for closed sales next month.”

Other key points from C.A.R.’s October 2024 resale housing report include:

• At the regional level, home sales in all major regions, except one, bettered their year-ago levels in October. Four out of five regions in the state experienced an annual increase, with the San Francisco Bay Area (16.2 percent) increasing the most, followed by the Central Valley (13.7 percent), Central Coast (13.0 percent) and Southern California (11.9 percent). The only region where sales fell behind last year’s level was the Far North (-6.7 percent).
• Thirty-eight of the 53 counties tracked by C.A.R. experienced an increase in sales from a year ago, with sales in 30 counties jumping more than 10 percent year over year. Del Norte (80.0 percent) posted the largest yearly sales gain, followed by Madera (41.2 percent) and Mendocino (35.9 percent). Twelve counties registered sales decreases, with sales in nine counties falling more than 10 percent, five counties dropping more than 20 percent and three counties dropping more than 30 percent. Trinity (-66.7 percent) posted the biggest annual sales decline, followed by Lassen (-45.5 percent) and Kings (-38.6 percent).
• All major regions except one increased recorded median price gains from a year ago in October. The Central Valley registered the biggest jump on a year-over-year basis, increasing 5.7 percent from a year ago. Southern California (5.5 percent) was a close second, followed by the Far North (3.7 percent) and the San Francisco Bay Area (3.6 percent). The only region with an annual price decline in October was the Central Coast, with a 5.7 percent drop. The price drop in that region was due primarily to lower median prices in Monterey and Santa Barbara counties, which likely resulted from a change in the mix of sales.
• Home prices continued to grow on a year-over-year basis throughout the state, with median sales prices in 33 counties rising from a year ago in October. Del Norte (29.9 percent) recorded the biggest price increase, followed by Mendocino (20.0 percent) and Lassen (14.1 percent). Nineteen counties experienced a median price decline from last year, with Trinity dropping the most at 35.9 percent, followed by Santa Barbara (-23.5 percent) and Monterey (-18.1 percent).
• The statewide Unsold Inventory Index (UII), which measures the number of months needed to sell the supply of homes on the market at the current sales rate, decreased month-over-month but increased from a year ago. The index was 3.1 months in October, down from 3.6 months in September but up from 2.7 months in October 2023. Total active listings at the state level rose 31.5 percent on a year-over-year basis, the slowest growth rate since April of this year. Nevertheless, it was the ninth consecutive annual sales gain and the eighth straight double-digit increase. With the market entering the holiday season and home sales likely to be negatively impacted in the next couple months by the surge in mortgage rates in recent weeks, housing inventory could continue building up as we move further into the fall and winter.
• At the county level, the number of properties on the market increased from a year ago in all but four counties in October. Calaveras (76.8 percent) had the biggest year-over-year jump in supply, followed by Contra Costa (63.7 percent) and San Joaquin (54.3 percent). Of the four counties that did not record an increase in total active listings on a year-over-year basis, San Benito was the only county that remained unchanged. Housing inventory dipped from a year ago in the remaining three counties, with San Francisco (-18.4 percent) dropping the most, followed by San Mateo (-12.2 percent) and Madera (-3.5 percent).
• New active listings at the state level improved from a year ago for the 10^th straight month in October. The pace of new listings was not only the highest since July of this year, but it was the ninth time in the last 10 months that new listings increased by double-digits. Consistent growth in active listings continues to be an encouraging sign for the supply side. Forty-two of the 52 counties tracked by C.A.R. experienced an annual increase in new active listings. Sutter increased the most on a year-over-year basis with a 57.8 percent increase, followed closely by Yuba (57.6 percent) and Calaveras (54.2 percent). Two counties were unchanged, and eight counties saw a decline in new active listings from a year ago. Trinity (-28.6 percent) had the biggest drop, followed by Plumas (-21.4 percent) and Lassen (-13.0 percent).
• The median number of days it took to sell a California single-family home was 25 days in October, up from 20 days in October 2023.
• C.A.R.’s statewide sales-price-to-list-price ratio* was 99.9 percent in October 2024 and 100.0 percent in October 2023.
• The statewide median price per square foot** for an existing single-family home was $442, up from $419 in October a year ago.
• The 30-year, fixed-mortgage interest rate averaged 6.43 percent in October, down from 7.62 percent in October 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS^® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 53 counties.

Leading the way…® in California real estate for nearly 120 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

October 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

Source: https://www.streetinsider.com/PRNewswire/California+housing+market+bounces+back+in+October+as+both+home+sales+and+median+price+post+increases+from+previous+month+and+year%2C+C.A.R.+reports/24003837.html