HOMES SALES REBOUNDED FUELED BY LOWEST INTEREST RATES SINCE SPRING

Home sales were higher in San Diego County as well as in California, reaching a five-month high statewide in July 2024, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).

Fueled by the lowest interest rates since spring, closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 279,810 in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2024 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

July 2024’s statewide sales pace rose 3.6% from the revised 270,200 homes sold in June 2024 and increased 4.1% from a year ago in July 2023, when a revised 268,840 homes were sold on an annualized basis. The sales pace has remained below the 300,000 threshold for 22 consecutive months, and year-to-date home sales edged up 0.2% from the first seven months of 2023. Year-to-date statewide home sales inched up 0.2%.

In San Diego County, the sales pace for home sales increased in July 2024 in both monthly and year-over-year comparisons. Sales of existing, single-family homes in San Diego County increased in July by 11.8% from June 2024, and 11.1% from July 2023.

“California’s housing market kicked off the second half of the year with a moderate increase in home sales in July as interest rates continued their downward trend,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “Despite transitioning into the off-season, the market should remain vibrant in the coming months if the availability of homes for sale continues to improve, and mortgage rates moderate further in the third and fourth quarters.”

Regarding home prices, the statewide median price slipped in July 2024 for the second month in a row, after setting a record high in May 2023. July’s median price dipped 1.6% from $900,720 in June 2024 to $886,560 in July 2024. California’s median home price in July 2024 was 6.5% higher than the $832,530 recorded in July 2023. 

July 2024 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

The year-over-year gain in July 2024 was the 13th straight month of annual price increases, albeit the smallest since January 2024. Home prices could soften further in the coming months but should continue to register moderate year-over-year growth for the rest of the year.

Stronger sales momentum in the higher-priced market segment on a statewide basis continued to contribute to median price growth, especially because homes priced at $1 million and above have been selling faster than lower-priced homes.

The $1 million-and-higher segment rose year-over-year in July 2024 by 24.5%, while sales in the sub-$500,000 segment dropped 1.6%. While sales of homes priced above $1 million were down for the second straight month, they accounted for 35.4% of all sales in July 2024, near the recent high recorded in May 2024. California easily boasts the most cities with million-dollar-priced homes, followed by New York and New Jersey. 

In San Diego County, the average price for an existing, single-family detached home in San Diego lingered at more than $1 million in July 2024. It was the fifth consecutive month the median price exceeded $1 million.

The median sales price in July 2024 was $1,020,000, a slight 3.2% decrease from the $1,054,180 posted in June 2024. A year ago, in July 2023, the median price for a San Diego home was $969,020, a 5.3% difference with July 2024.

“As the economy showed more signs of cooling in the past couple of months, mortgage rates continued to come down, reaching the lowest level in 15 months,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “This improvement in lower borrowing costs could motivate homebuyers on the sideline to reenter the market, especially since home prices began to soften at the tail end of the homebuying season.”  

Other key points from C.A.R.’s July 2024 resale housing report include:

• At the regional level, home sales in nearly all major regions bounced back and rose higher than year-ago levels in July 2024. The San Francisco Bay Area (19.2%) increased the most, followed by Southern California (11.4%) and the Central Valley (10.3%) regions.
  
  
• At the regional level, all major regions experienced an increase in their median price from a year ago in July. The Central Coast posted the biggest price jump on a year-over-year basis, increasing 8.0% from a year ago, followed by Southern California at 6.1%.
  
  
• The statewide unsold inventory index, which measures the number of months needed to sell the supply of homes on the market at the current sales rate, was mixed. The index was at 2.9 months in July 2024, down from 3.0 months in June 2024 and up from 2.5 months in July 2023.

July 2024 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

• The unsold inventory index of available existing homes for sale in San Diego County was at 2.6 months in July 2024, compared to 2.7 months in June 2024 and 2.0 months in July 2023. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate.
  
  
• Active listings statewide rose 39.0% on a year-over-year basis. It was the sixth straight month of annual gains in for-sale properties and the highest since January of last year.
  
  With mortgage rates likely to moderate in the coming months, further improvement in the supply side could be observed in the market for the rest of the year as the lock-in effect continues to ease.
  
  
• New active listings at the state level increased from a year ago for the seventh consecutive month. With mortgage rates moderating throughout the month, the pace of growth accelerated in July 2024 (19.5%) after slowing to a single-digit growth rate in June 2024.
  
  
• The median number of days it took to sell a California single-family home was 20 days in July and 16 days in July 2023.
  
  
• In San Diego, the median number of days it took to sell an existing, single-family home was 16 days in July 2024, compared to 14 days in June 2024 and 12 days in July 2023. The figures for the previous 2024 months were 12 days in May, April, and March. The median represents the time when half the homes sell above it and half below it.
  
  
• C.A.R.’s statewide sales-price-to-list-price ratio was 100.0% in July 2023 and 100.0% in July 2023. The sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio of 100% or above suggests that the property sold for more than the list price, and a ratio below 100% indicates that the price sold below the asking price.
  
  
• The statewide average price per square foot for an existing single-family home was $437, up from $408 in July a year ago.
  
  
• The 30-year, fixed-mortgage interest rate averaged 6.85% in July, up from 6.71% in July 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.