The median home price in California reached a new record high of $908,040 in May, up by 0.4% from April and up by 8.7% one year ago, according to new data from the California Association of Realtors (CAR). This marked the second consecutive month where the median home price for the state exceeded $900,000 and the 11th straight month of annual price increases.
While this occurred, closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 272,410, down 1.1% from the revised 275,540 homes sold in April and down 6% from one year ago, when a revised 289,860 homes were sold on an annualized basis. The sales pace remained below the 300,000-threshold for the 20th consecutive month.
The statewide unsold inventory index 2.6 months in May, unchanged from April and up from 2.1 months in May 2023. Active listings at the state level rose on a year-over year basis for the fourth straight month, and the increase was the largest in 15 months. The median number of days it took to sell a California single-family home was 16 days last month, compared to 17 days in May 2023.
“California home sales stalled in May as mortgage rates reached the highest level in five months and may have contributed to the slowdown in market activity,” said CAR President Melanie Barker, a Yosemite-based realtor. “However, a moderation in interest rates in the past couple of weeks and recent improvements in housing inventory could create an opportunity for motivated buyers to reenter the market before the homebuying season peaks.”
“A persistent shortage of homes for sale, particularly in the more affordable market segments, continued to push up California’s median home price to new record highs over the past couple of months,” added CAR Senior Vice President and Chief Economist Jordan Levine. “With mortgage rates coming back down from their recent peaks and market competition heating up, the statewide median price may have more room to grow before the summer ends.”
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