California Housing Market Analysis - September 2024
The California housing market in September 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes in the state stands at $816,400, reflecting a modest year-over-year increase of 0.1%. This slight uptick indicates a stabilization in home prices, despite broader economic uncertainties.
In contrast, the Median List Price has risen to $851,900, marking a more significant year-over-year increase of 4.6%. This suggests that sellers are optimistic about the market's potential, possibly driven by increased demand or limited supply in certain areas. The median Price Per Square Foot has also seen a rise, now at $517, which is a 3.5% increase from the previous year. Similarly, the Median List Price per square foot has increased by 5.1%, reaching $526.
Sales activity has shown positive momentum, with 21,822 Homes Sold, representing a 0.8% increase year-over-year. Pending Sales have also grown by 2.1%, totaling 25,660. This indicates a healthy level of buyer interest and activity in the market. New Listings have surged by 7.0%, reaching 30,041, which could help alleviate some of the inventory constraints observed in previous months.
Inventory levels have expanded significantly, with a 24.1% increase year-over-year, bringing the total to 67,161 homes. This rise in inventory is reflected in the Months of Supply, which has jumped by 60.0% to 3.10 months. Such an increase suggests that the market is moving towards a more balanced state, potentially easing the competitive pressure on buyers.
The Median Days on Market have increased by 7.0%, now averaging 35 days. This indicates that homes are taking slightly longer to sell compared to last year, possibly due to the increased inventory and higher list prices. The average sale to list ratio has decreased by 0.5%, now at 100.1%, suggesting that buyers are negotiating more effectively or that sellers are adjusting their expectations.
The percentage of Homes Sold above list price has declined by 5.7%, now at 41.0%. This decrease could be attributed to the increased inventory and longer days on market, giving buyers more leverage in negotiations. Price Drops have increased by 1.8%, now at 26.4%, indicating that some sellers are adjusting their pricing strategies to attract buyers.
Finally, the percentage of homes going off the market within two weeks has decreased by 7.3%, now at 34.6%. This decline suggests that the market is cooling slightly, with buyers taking more time to make purchasing decisions.
Overall, the California housing market in September 2024 shows a mix of stabilization and growth, with increased inventory and list prices being key factors. While sales activity remains robust, the market appears to be shifting towards a more balanced state, offering opportunities for both buyers and sellers.
