California’s housing market saw a rebound in October, reversing a two-month trend of declining sales, while prices also rose once again. Experts say that active buyers continue to hold a positive outlook on the California housing market.
Before the U.S. elections, the hot California housing market had also experienced a stagnation, with September’s home sales hitting the lowest levels of the year. However, the latest report indicates a turnaround in the performance of the California housing market in October.
According to the California Association of Realtors (C.A.R), the seasonally adjusted annualized rate showed that the total sales of existing single-family homes in October were 264,870 units, an increase of 4.7% from September and a 9.5% increase compared to the same period last year. This marks the fastest year-over-year sales growth in 40 months.
C.A.R President Heather Ozur stated that many homes listed in August and September finally closed deals in October. She noted, “Although the pace of market improvement has been slower than expected, the rebound in home sales in October indicates that potential buyers still have a strong interest in purchasing homes.”
Following a brief decline, California’s median home price rose once again in October to $888,740, a 2.4% increase from September, marking the largest increase in the past three months. The average price per square foot for existing single-family homes was $442, with a median of 25 days on the market.
In specific regions, the median home prices in almost all major areas of California showed year-over-year growth in October. The Central Valley region saw the largest annual increase, followed by Southern California (5.5%), the Far North region (3.7%), and the San Francisco Bay Area (3.6%); the only area experiencing a yearly decline in home prices was the Central Coast region.
Economists anticipate that California’s housing prices will continue to see year-over-year growth in the remaining months of this year. C.A.R Vice President and Chief Economist Jordan Levine mentioned, “With the conclusion of the U.S. elections and the Fed’s recent rate cut, some buyers are taking advantage of the seasonal slow period to purchase homes before the year ends.”
“While mortgage rates are expected to decrease slowly, posing obstacles for some consumers in buying homes, the double-digit increase in homes entering pending sales in October is a positive sign for next month’s transaction volume,” he added.
Freddie Mac data shows that in the week ending November 14, the average fixed mortgage rate for a 30-year loan was 6.78%, while for a 15-year loan, it was 5.99%. Economists predict that mortgage rates in the U.S. in 2025 will likely remain between 5.5% to 6.5%, without a return to the 4% level. Federal Reserve Chairman Jerome Powell also stated on the 14th that the U.S. economy is performing “very well” and there’s no rush in further interest rate cuts.
With the dust settling after the election results, the overall U.S. housing market is showing signs of rebound. Online real estate brokerage company Redfin found that both the Homebuyer Demand Index and the Mortgage-rate Locks Index have risen, indicating that buyers are returning to the market. ◇