LOS ANGELES (KTLA) – High mortgage rates continue to drag on home sales in California, according to the California Association of Realtors, which just released its final numbers for 2024.
Data shows that sales of single-family homes increased by roughly 4% year-over-year, marking the first annual increase in three years. Still, the volume of sales remained well below historical norms.
“Sales are still pretty weak,” said Guillermo Flores, senior research analyst at the association. “Sales have been below 400,000 per month for 31 months in a row.”
As of Monday, the average 30-year fixed-rate mortgage was 7%, three times higher than the record lows seen during the COVID-19 pandemic. The hope that rates would drop in the near-term, experts say, has faded as the Federal Reserve still grapples with inflation.
“The question marks have shifted to being more about the economy, how it’s going to hold up, what’s going to happen with inflation,” said Jordan Levine, the association’s chief economist. “I think the macro stuff is going to have an impact on the regional housing market.”
In terms of prices, the median single-family home in California was $861,020 in December, only $9,000 more than in December 2023. For comparison, the median price in May was $908,000.
Price growth, CAR said, is stalling.
“The (price) gain recorded last month was smaller than the six-month moving average between May 2024 and October 2024,” said Oscar Wei, CAR’s deputy chief economist. “The deceleration … is an indication that further softening in home prices could be forthcoming.”
The San Francisco Bay Area continues to see the highest median home prices in the state, finishing 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% Chg | Sales YTY% Chg |
|---|---|---|---|---|---|
| California Single-Family Homes | $861,020 | $852,880 | $819,820 | 5.0% | 19.8% |
| CA Condo/Townhomes | $664,550 | $675,000 | $635,000 | 4.7% | 21.3% |
| Los Angeles Metropolitan Area | $815,500 | $822,000 | $760,000 | 7.3% | 14.2% |
| Central Coast | $995,000 | $1,030,000 | $979,500 | 1.6% | 20.5% |
| Central Valley | $492,000 | $495,000 | $462,000 | 6.5% | 15.1% |
| Far North | $369,500 | $375,000 | $364,500 | 1.4% | 6.3% |
| Inland Empire | $594,950 | $600,000 | $570,000 | 4.4% | 7.3% |
| S.F. Bay Area | $1,200,000 | $1,316,500 | $1,182,000 | 1.5% | 14.6% |
| Southern California | $850,000 | $850,000 | $790,000 | 7.6% | 16.3% |
