California Housing Market: Trends and Forecast 2024-2025

The California housing market saw a rebound in October 2024, with both home sales and the median price showing increases compared to the previous month and the same time last year. This suggests that after a period of uncertainty, the market is starting to stabilize and potentially shift towards a more balanced state, potentially leaning towards a buyer’s market in some areas.

While we’ve seen some positive signs, it’s crucial to remember that the market can change quickly, and factors like interest rates and economic conditions could impact the future of the housing market. Let’s dive deeper into the current trends to get a better understanding of what to expect in the coming months.

California Housing Market Trends in 2024

Home Sales

According to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), existing single-family home sales in California reached a seasonally adjusted annualized rate of 264,870 in October. This represents a 4.7% increase from September and a 9.5% increase compared to October 2023. This year-over-year growth is the fastest pace we’ve seen in 40 months.

This increase in home sales can be attributed to a few factors. Many homes that went pending in the previous months finally closed escrow in October. Also, with the Federal Reserve potentially cutting interest rates and the elections behind us, some buyers took advantage of the seasonal lull and purchased before the end of the year.

However, it’s important to note that the increase in sales is partly due to the low sales base in 2023, which saw a decline of nearly 12% compared to 2022.

At the regional level, most major areas saw an increase in sales compared to the previous year. The San Francisco Bay Area saw the most significant increase at 16.2%. The Central Valley, Central Coast, and Southern California also experienced double-digit year-over-year growth. The only exception was the Far North region, which saw a 6.7% decrease.