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California home sales were up in October after two straight months of declines, registering the fastest year-over-year sales pace in 40 months.

According to data from the California Association of Realtors (CAR), closed escrow sales of existing, single-family detached homes in the state during October totaled a seasonally adjusted annualized rate of 264,870, up 4.7% from the 253,010 homes sold in September and up 9.5% from the revised 241,910 sales figure of October 2023.

Also on the rise was the statewide median price – $888,740, up 2.4% from the $868,150 price in the prior month and up 5.8% from the revised $839,990 price recorded one year earlier. CAR noted 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. October also marked the 16th consecutive month of annual price increases.

The statewide Unsold Inventory 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% on a year-over-year basis, the slowest growth rate since April of this year but also the ninth consecutive annual sales gain and the eighth straight double-digit increase.

“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 CAR 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.”