Market data as of February 2025. For the latest numbers in your area, see my live Altos Research market report.
Let’s dive into the latest market stats and see what’s happening in the California real estate landscape.
Sales Dip, Prices Climb (Year-Over-Year)
January 2024 presented a mixed bag for California’s single-family home market. Here’s the breakdown:
- Sales Slowdown: Existing home sales hit 254,110 on a seasonally adjusted annualized rate. This represents a 10% drop from December and a 1.9% decrease compared to January 2023. So, while the year started with a bit of a lull, it’s important to remember these are annualized rates, and seasonal fluctuations are normal.
- Median Price Growth: Despite the sales dip, the median home price in California reached $838,850. That’s a 6.3% jump from January 2023, showing that while sales may be slowing, home values are still appreciating in many areas. However, there was a 2.6% drop from December.
- Year-to-Date Trends: Overall, year-to-date home sales are down by 1.9%.
Inventory on the Rise
One of the more notable shifts we’re seeing is in the availability of homes:
- Unsold Inventory Index (UII) Increase: The UII, which tells us how many months it would take to sell all the homes on the market, rose to 4.1 months in January. This is up from 2.7 months in December and 3.2 months in January 2023.
- Active Listings Surge: We’re seeing a significant increase in active listings: the fastest annual growth in two years! This is due to a combination of slower sales activity and a surge of new properties hitting the market at the start of the year.
What Does This Mean?
Essentially, we’re seeing a bit of a market recalibration. Sales are slowing, but prices are still showing year over year growth. And importantly, buyers are seeing more options as inventory increases. This could signal a shift towards a more balanced market.
Stay Informed!
For more in-depth insights, be sure to check out my ALTOS CA LINK for the latest trends.
What are your thoughts on the current California housing market?
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