In November, California saw a significant decrease in existing-home sales due to high borrowing costs. According to the California Association of Realtors (C.A.R.), closed escrow sales for single-family detached homes totaled 223,940 at a seasonally adjusted annualized rate – the lowest level since 2007 and down by 7.4% from the previous month.
C.A.R.’s president for 2024, Melanie Barker stated that elevated mortgage interest rates and limited housing inventory were major factors contributing to this decline in home sales. However, with recent drops in mortgage rates and indications from the Federal Reserve about potential rate cuts next year, there is hope for an increase in homebuyers entering the market.
Although November’s median home price decreased compared to October’s figures, it still showed growth from last year – marking five consecutive months of increases. The statewide median price was recorded at $822,200 which is a decrease of 2.2% from October but an increase of 6.2% compared to last year’s revised figure of $774150.
This data highlights how current economic conditions are impacting California’s real estate market as existing-home sales hit their lowest point since Connect CRE began tracking them sixteen years ago.
