Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 254,110 in January, the lowest level in 13 months.
According to data from the California Association of Realtors (CAR), last month’s total was down 10% from the 282,490 transactions in December and down 1.9% from the 259,160 sales in January 2024. CAR noted the double-digit month-to-month sales decline was the biggest decrease in 30 months while the year-over-year decline was the first in eight months.
CAR attributed the weak sales activity to elevated mortgage rates and the wildfires that impacted Los Angeles County, adding that pending sales could remain soft in the first quarter.
“Home sales slowed last month, impacted by high mortgage rates and the devastating wildfires in Southern California,” said CAR President Heather Ozur, a Palm Springs realtor. “While sales are expected to remain soft this month and next, it is encouraging to see an uptick in new listings as the market gears up for the spring homebuying season. The improvement in supply conditions will offer buyers more options to choose from and allow some demand to be fulfilled as competition heats up in coming months.”
January’s statewide median price of $838,850 was down 2.6% from December’s $861,020 but was up 6.3% from a revised $789,480 one year earlier. January also marked the 19th straight month for year-over-year increases in the median sales price.
CAR Senior Vice President and Chief Economist Jordan Levine observed, “After dipping for the first time in a year in December 2024, new active listings at the state level rebounded with the fastest year-over-year growth in nearly four years. While the number of newly listed properties is still below early 2020’s pre-pandemic levels, last month’s total marked a five-year high for January. With mortgage rates remaining elevated since late 2022, many homeowners are coming to terms with the fact that 3% rates aren’t returning anytime soon. As a result, more sellers are deciding to list their homes on the market.”
