Home sales slowed in San Diego County and across the state in September 2024, despite the lowest interest rates since spring, according to the latest home sales and price report from the California Association of Realtors (C.A.R.).
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 253,010 in September 2024, 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 September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
California sales decreased 3.4% in September 2024 from August 2024, when 262,050 homes were sold on an annualized basis. Home sales statewide hit the lowest level in nine months.
In a year-over-year comparison, the statewide sales pace was up 5.1% in September 2024, compared with September 2023, when 240,840 homes were sold on an annualized basis.
The sales pace has remained below the 300,000-threshold for the past two years, while year-to-date home sales for 2024 edged up 0.9 percent compared to the first nine months of 2023.
The sales pace for home sales in San Diego County decreased by 14.6% in September 2024, compared to August 2024. In a year-over-year comparison, the sales pace was 9.4% higher compared to September 2023.
“The inventory of homes for sale has steadily improved in recent months as the market moves into the typical off-peak home-buying season,” said C.A.R. President Melanie Barker, a Yosemite REALTOR®. “With home prices likely to moderate further in the coming months, the fourth quarter could offer an opportunity for potential buyers who have been waiting to re-enter the market, especially as interest rates gradually return to historical averages.”
Regarding home sales prices, September’s statewide median price declined 2.3% from $888,740 in August 2024 to $868,150 in September 2024. The September 2024 figure was 2.9% higher than the revised $843,500 recorded in September 2023. The statewide year-over-year gain was the 15th straight month of annual price increases.
September 2024 County Sales and Price Activity
Home prices could soften further in the coming months as the market enters the traditional off-season but should continue to post year-over-year growth for the remainder of the year.In San Diego County, the average price for an existing, single-family detached home was $1 million in September 2024. The median price in August 2024 was $1,010,000, a 1.0% difference with September 2024. A year ago, in September 2024, the median price for a San Diego home was $973,100, a 2.8% difference.
It was the seventh consecutive month the median monthly price for a San Diego County home has been $1 million or higher.
Sales in higher-priced market segments continued to have an effect on the mix of sales, but the impact on the statewide median price growth has tapered in recent months. While the sales pace for the $1 million-and-higher price segment remained moderately low in September at 3.9%, sales in the sub-$500,000 market continued to underperform, dropping 8.6% from a year ago. Moderation in the median price growth could be observed in the coming months if the share of homes priced at or above $1 million continues to shrink in the fall.
“Economic uncertainty and hopes for lower interest rates may have caused many buyers to hold off on a home purchase,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “As a result, home sales declined for the second consecutive month, reaching their lowest level this year. However, the recent rebound in bond yields is a reminder that rates will continue to fluctuate, and waiting may not be the best strategy when it comes to homebuying.”
Other key points from C.A.R.’s September 2024 resale housing report include:
- At the regional level, home sales in Southern California increased 1.1% in September 2024 when compared to last year’s sales level.
- At the regional level, median home prices in Southern California experienced a 3.7% increase in September 2024, compared to September 2023.
- Home prices in September 2024 continued to grow on a year-over-year basis on a county level throughout the state, with median sales prices in 38 counties rising from a year ago.
- 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, increased in both month-over-month and year-over-year comparisons. The index was 3.6 months in September 2024, up from 3.2 months in August 2024 and up from 2.8 months in September 2023.
September 2024 County Unsold Inventory and Days on Market
- The unsold inventory index of available existing homes for sale in San Diego County was at 3.2 months in September 2024, compared to 2.8 months in August 2024, 2.6 months in July 2024, 2.7 months in June 2024 and 2.5 months in September 2023. The index measures the number of months needed to sell the supply of homes on the market at the current sales rate.
- Total active listings at the state level rose 36% on a year-over-year basis. It was the eighth consecutive annual gain in for-sale properties and the seventh straight month of double-digit active listing increases.
- With the market entering the off-season and housing demand likely to improve in the next couple months, housing inventory could begin to tighten up as we move further into the fall.
- New active listings at the state level improved from a year ago for the ninth consecutive month, with eight of them recording a double-digit increase. Despite a decelerating growth rate in listings in September 2024 for the second straight month, new listings increasing by double-digits this late in the year continues to be an encouraging sign for the supply side.
- The median number of days it took to sell a California single-family home was 24 days in September 2024, up from 22 days in August 2024 and 18 days in September 2023.
- In San Diego, the median number of days it took to sell an existing, single-family home was 18 days in September 2024, compared to 17 days in August 2024 and 14 day sin September 2023. For previous months in 2024, the figures were 16 days in July, 14 days in June and 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 percent in September 2024 and 100.0 percent in September 2023.
- The statewide median price per square foot for an existing single-family home was $424 in September 2024, up from $416 in September a year ago.
- The 30-year, fixed-mortgage interest rate averaged 6.18 percent in September, down from 7.20 percent in September 2023, according to C.A.R.’s calculations based on Freddie Mac’s weekly mortgage survey data.