In September, California’s housing market experienced a slight dip in activity, but the outlook remains promising. According to the California Association of Realtors (C.A.R.), home sales totaled 253,010 units on a seasonally adjusted annualized rate, down 3.4% from August. However, the market is still outperforming compared to last year, with sales up 5.1% from September 2023.
Positive Indicators for Buyers
The median home price in California reached $868,150, a 2.9% increase from the previous year, marking the 15th consecutive month of annual price gains. With mortgage rates gradually easing, the current landscape may present a unique opportunity for buyers. C.A.R. President Melanie Barker highlighted that the inventory of available homes has improved, signaling a more balanced market as we move toward the off-peak season.
Regional Trends Show Continued Growth
Certain regions, such as the Far North and San Francisco Bay Area, saw notable increases in year-over-year home sales, with a 7.2% and 5.1% rise, respectively. However, higher-priced homes continue to impact the overall market dynamics, with sales in the $1 million-and-higher segment still underperforming. On a positive note, the increase in inventory should support further demand as interest rates continue to stabilize.
Opportunities for Buyers in a Shifting Market
Despite the slower pace in September, the market remains robust and offers opportunities for potential buyers. C.A.R.’s Chief Economist Jordan Levine emphasized that holding off on home purchases might not be the best strategy, as interest rates fluctuate. The recent improvements in housing inventory could mean more options for buyers as we enter the fall season.
Conclusion: Looking Ahead
While September saw a slight dip in home sales, the overall trend remains positive. With home prices still increasing year-over-year and mortgage rates potentially stabilizing, now could be the perfect time for buyers to step back into the market. As California’s housing market continues to evolve, the upcoming months might offer new opportunities for buyers seeking to invest in real estate.