California housing market closes the year strong despite challenges
California’s housing market closed 2024 on a positive note, with existing single-family home sales reaching 268,180 in December, a 0.1% increase from November and a 19.8% rise from December 2023. The statewide median home price reached $861,020 in December, up 1% from November and 5% year-over-year. For 2024, home sales rose 4.3% from the previous year, with the median price increasing by 6.3%. Despite these gains, home sales remained below pre-Covid levels of 400,000 units.
The December price uptick continued a year-long trend, and firm performance in high-end home sales contributed to the price increase. California’s regional markets saw growth across the board, with the Central Coast leading at a 20.5% sales increase. The statewide Unsold Inventory Index dropped to 2.7 months in December, signaling tighter supply, though inventory is expected to rise in early 2025.
Challenges remain, including high mortgage rates and ongoing issues like the Southern California wildfires, which may slow market activity in early 2025. However, demand is expected to increase in spring, supported by a solid economy and favorable long-term trends.
Source: California Association of REALTORS®