California month-over-month home sales rebounded in January to 256,160 units, up 14.4%, the highest level in six months as mortgage rates pulled back sharply at the end of 2023, says the California Association of Realtors. The statewide median home price decreased 3.8% from December's $819,740 to $788,940 in January primarily due to seasonal factors and registered a 5% year-over-year gain.
"It's encouraging to see California's housing market kick off the year with positive sales growth in January," said C.A.R. President Melanie Barker. "While we'll likely experience some ups and downs in home sales in the coming months as rates continue to fluctuate, the lending environment is expected to be more favorable in 2024, so the market should see more pent-up demand translate into sales."
Sales in all major regions rose in January on a year-over-year basis, with the San Francisco Bay Area recording a 6.2% sales growth from the prior year. All major regions, except for the Far North, recorded an annual increase in their median prices. The San Francisco Bay Area posted a 10.6% year-over-year jump.
In San Mateo County, January home sales registered 7% below that of the prior year and 45.7% fewer than in December. The county began the year with a median sales price of $1,975,000, up 21.5% from $1,625,000 in January 2023 and a 9.7% increase from $1,800,000 in December 2023.
On the other hand, Santa Clara County's home sales in January were 19.7% above that in January last year and down 22.8% from December 2023. The January median sales price of a Santa Clara County single-family home was $1,710,440, 11.8% higher than $1,530,000 in January of 2023, and 0.8% lower than $1,725,000 in December 2023.
C.A.R. reports an increase in new active listings across the state for the first time in 19 months. "This is great news for the housing market. Inventory is still very limited in both San Mateo and Santa Clara County markets, but the good news is according to MLSListings, new listings were up across the board for single-family homes and condos/townhomes in both counties in January," said Eileen Giorgi, president of the Silicon Valley Association of Realtors. "Though rates continue to fluctuate due to ongoing inflation, the expectation is that rates will decline later this year. As rates ease, we expect more sellers will be willing to put their homes in the market."
The 30-year, fixed-mortgage interest rate averaged 6.64% in January, up from 6.27% in January 2023, according to C.A.R.'s calculations based on Freddie Mac's weekly mortgage survey data.
Meanwhile, despite high prices, homes that are for sale aren't staying on the market for very long. The median days on market in Santa Clara County in January was 11 days and 19 in San Mateo County. "This shows buyers are getting comfortable with interest rates and are ready to purchase when the right home comes along. The market could certainly see more pent-up demand turn into sales in the spring," said Giorgi.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
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