There was not much to be thankful for when it comes to the California real estate market in November. According to the California Association of Realtors, existing home sales fell 7.4 percent, down to the lowest level in 16 years. Part of the problem: Sky high prices across the state.
According to CAR, November’s statewide median home price was $822,200, down 2.2 percent from October and up 6.2 percent from November 2022. Year-to-date, statewide home sales were down 25.9 percent in November.
“Elevated mortgage interest rates and a persistent shortage of homes for sale hindered home sales in November,” said 2024 CAR President Melanie Barker. “With mortgage rates dropping to the lowest level in four months in recent weeks and the Federal Reserve indicating it plans to cut rates more than previously anticipated in 2024, more prospective homebuyers could reenter the market early next year.”
At the regional level, sales in all major regions dipped in November on a year-over-year basis. The Central Valley region experienced the biggest dip, down 14.4 percent from a year ago. That was followed by the Central Coast, the San Francisco Bay Area, Southern California and the Far North.
“While sales have been weak for the past several months, a tight supply of homes for sale is keeping home prices from falling,” said CAR Senior Vice President and Chief Economist Jordan Levine. “Going into 2024, the recent decline in mortgage rates, along with the upward momentum in home prices, could motivate more would-be sellers to list their homes for sale in the spring homebuying season.”