California Home Sales Decline to Seven-Month Low in August; Buyers Adopt "Wait and See" Approach

Regionally, home sales were higher than last year in most major areas, with the San Francisco Bay Area seeing a 4.8% increase.Photo byBlake WheeleronUnsplash

California home sales dropped to a seven-month low in August, despite a dip in interest rates to their lowest level since spring, according to the California Association of Realtors (C.A.R.). The seasonally adjusted annualized rate of existing single-family home sales fell to 262,050, a 6.3% decrease from July and a 2.8% increase from the previous year. This marks the 23rd consecutive month sales have remained below 300,000 units.

C.A.R. President Melanie Barker noted that while home prices remained relatively stable, with a slight 0.2% increase to $888,740 in August, the pace of price growth has slowed. Barker attributed this moderation to the end of the traditional home buying season and anticipated improvements in housing affordability as mortgage rates are expected to decrease further.

Regionally, home sales were higher than last year in most major areas, with the San Francisco Bay Area seeing a 4.8% increase. However, sales in Southern California fell by 2.3%. The statewide median price per square foot rose to $427, up from $416 a year ago.

The unsold inventory index rose to 3.2 months, reflecting a 39% increase in active listings from the previous year. Despite a deceleration in new listings, the number of properties on the market has been growing steadily.