It wasn’t exactly a typically slow January for California. According to newly released numbers out from the California Association of Realtors, existing, single-family home sales totaled 444,540 in January, up 3.4 percent from the month prior. Compared to January 2021, however, statewide sales were down 8.3 percent.
A welcome decline for would-be buyers, however, came in the form of the state’s median home price. January’s statewide median home price was $765,580, down 3.9 percent from December and up 9.4 percent from January 2021.
January’s numbers marked the first time since July 2020 that the state did not record a double-digit annual gain in its median price.
“It’s encouraging to see the market momentum from the last two years being carried forward into 2022 and the economy continuing to recover. January’s sales remained above pre-pandemic levels, and new purchase mortgage applications are still registering strong numbers,” said CAR Vice President and Chief Economist Jordan Levine. “However, a surge in interest rates in the past few weeks is concerning and will likely create affordability headwinds for buyers, which may result in housing demand being curtailed in the upcoming months.”
At the regional level, nearly all major regions in the Golden State recorded a decrease in sales on a year-over-year basis. The San Francisco Bay Area had the biggest year-over-year sales decline of all regions, down 22.3 percent. The Central Coast and Southern California also saw double-digit declines, down 20.7 percent 10.1 percent, respectively.