LOS ANGELES (KTLA) – High mortgage rates continue to be a drag on home sales in California, the California Association of Realtors announced in its final numbers for 2024.
Sales of single-family homes rose about 4% from a year ago, the first annual increase in three years, data showed. Even so, sales volumes were still significantly below historical norms.
“Sales are still pretty weak,” said Guillermo Flores, senior research analyst at the association. “Sales have been below 400,000 units per month for 31 consecutive months.”
California home sales volume through December 2024 (California Association of Realtors)
As of Monday, the average interest rate on a 30-year fixed-rate mortgage was 7%, triple the record low level seen during the COVID-19 pandemic. Experts say expectations that interest rates will fall quickly are fading as the Federal Reserve remains grappling with inflation well above its 2% target rate.
“The question mark has become more about the economy, how is it going to hold up, what is going to happen to inflation,” said Jordan Levine, the association’s chief economist. “I think macro things will also have an impact on the local housing market.”
When it comes to prices, the median price for a single-family home in California in December was $861,020, just $9,000 (5%) more expensive than in December 2023. For comparison, the median price in May was $908,000.
According to CAR, price growth is slowing.
“The increase recorded last month was smaller than the six-month moving average from May 2024 to October 2024,” said Oscar Wei, chief deputy economist for the Central African Republic. “The slowing rate of price growth suggests that house prices may soften further.”
The San Francisco Bay Area continues to have the highest median home price in the state, ending the year at $1.2 million, followed by the Central Coast ($995,000) and Southern California ($850,000).
Region/County Dec-24 Nov-24 Dec-23 Price YTY% Change Sales YTY% Change California Single Family Home $861,020 $852,880 $819,8 205.0%19.8%California Condo/Townhome$664,550$675,000$635,0004.7%21.3%Los Angeles City Area$815,500$822,000$760,0007.3%14.2%Central Coast$995,000$1,030,000$979,5001.6%20.5%Sen Toral Valley$492,000$495,000$462,0006.5%15.1%Far North$369,500$375,000$364,5001.4%6.3%Inland Empire$594,950$600,000$570,0004.4%7.3%SF Bay Area$1,200,000$1,316,500$1,182,0001.5%14.6%Southern California$850,000$850,000$790,0007.6%16.3%California Home Sales Data (California Association of Realtors)
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