California Housing Market Analysis - August 2024
The California housing market in August 2024 presenting us a picture with several key indicators showing both positive and negative trends. The Median Sales Price for homes in the state stands at $817,600, reflecting a year-over-year (YoY) decrease of 2.2%. Similarly, the Median List Price is $818,800, down by 0.5% YoY. This slight decline in prices suggests a cooling market compared to the previous year.
Despite the drop in median prices, the median Price Per Square Foot has increased by 3.8% YoY to $504, while the Median List Price per square foot has risen by 4.2% YoY to $505. These figures indicate that while overall prices have decreased, the value per square foot has appreciated, suggesting a shift in buyer preferences towards smaller, more affordable properties.
The number of Homes Sold in August 2024 was 25,009, marking a slight decline of 0.9% YoY. Pending Sales also saw a minor decrease of 0.6% YoY, totaling 27,612. However, New Listings have surged by 4.9% YoY, reaching 31,165. This increase in New Listings, coupled with a significant 24.8% YoY rise in inventory to 65,013, indicates a more competitive market with more options available for buyers.
The Months of Supply, a critical measure of market balance, has increased by 50.0% YoY to 2.60 months. This substantial rise suggests that the market is shifting towards a buyer's market, with more homes available relative to the pace of sales. Additionally, the Median Days on Market have increased by 7.0% YoY to 33 days, further indicating a slowdown in the speed at which homes are being sold.
The average sale to list ratio has slightly decreased by 0.8% YoY to 100.2%, indicating that homes are selling very close to their listing prices. However, the percentage of Homes Sold above list price has dropped by 6.4% YoY to 42.1%, suggesting that fewer buyers are willing to pay a premium. Price Drops have increased by 2.9% YoY to 27.7%, reflecting sellers' adjustments to align with market conditions.
Lastly, the percentage of homes going off the market within two weeks has decreased by 7.3% YoY to 35.9%, indicating a slower market pace compared to the previous year.
In summary, the California housing market in August 2024 shows signs of cooling with declines in median sales and list prices, a rise in inventory, and longer days on market. However, the increase in Price Per Square Foot and New Listings suggests that there are still opportunities for both buyers and sellers in this evolving market.
