California existing home sales reached their highest level in six months during January, according to new data from the California Association of Realtors (CAR).
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 256,160 last month, which represented a 14.4% spike from the revised 224,000 homes sold in December and it was also up 5.9% from the 241,920 homes sold in January 2023 for the first year-over-year sales gain in 31 months. However, the sales pace stayed below the 300,000-unit threshold for the 16th straight month.
While California’s statewide median home price dropped by 3.8% from December’s $819,740 to $788,940 in January, the first time in 10 months the median price was below $800,000. New active listings at the state level increased from a year ago for the first time in 19 months, and the annual increase was the largest since May 2022. However, overall active listings declined from a year-ago in 35 counties in January, with 17 of them registering a double-digit decrease at the beginning of this year.
“It’s encouraging to see California’s housing market kick off the year with positive sales growth in January,” said CAR President Melanie Barker, a Yosemite realtor. “While we’ll likely experience some ups and downs in home sales in the coming months as rates continue to fluctuate, the lending environment is expected to be more favorable in 2024, so the market should see more pent-up demand translate into sales.”
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