California home sales ended 2024 with the largest yearly increase since June 2021, according to the California Association of Realtors. December 2024's sales pace was essentially unchanged from November but was up 19.8% from the prior year. The statewide December median price ticked up 1% from $852,880 in November to $861,020 in December and was up 5% from a revised $819,820 in December 2023.
"California's housing market ended the year with a positive note with home sales reaching the highest level in five months," said 2025 C.A.R. President Heather Ozur. "With mortgage rates remaining at their highest level since early July and devastating wildfires taking a toll on the Southern California housing market, we'll likely have a slow start for the year, but demand should pick up once we enter the spring homebuying season."
All major regions experienced home sale increases from the prior year. Their annual median price also increased, but at a more modest pace. The San Francisco Bay Area posted a 14.6% jump in sales and recorded a 1.5% year-over-year price gain.
At the local county level, according to MLSListings' December 2024 market data report, in San Mateo County, December sales decreased 22% from November, and were down 7% from December 2023. Inventory was down 50% from November and down 18% from December 2023. Homes stayed on the market for an average of 34 days. New listings were down 54% over November, and down 7% from December 2023.
In Santa Clara County, the MLS reports sales were down 20% from November, and up 22% from December 2023. Inventory was down 39% from November and down 13% from December 2023. The average days on market increased from 22 to 26. New listings were down 32% over November, but up 10% from December of last year.
"Silicon Valley's housing market ended the year strong despite recorded drop in sales, which reflect the traditional seasonal trend and the inventory that just isn't there to meet demand. Reports from agents in the region remain positive. There continues to be heavy traffic at open houses, which shows strong interest from prospective buyers," said Tammie Peters, 2025 president of the Silicon Valley Association of Realtors.
Peters, who is a Realtor with Christie's International Real Estate Sereno in Los Gatos, noted homes if priced right are still selling over asking. "According to MLSListings, in San Mateo County, the median single-family home cost $1,734,400 and sold in 15 days for 104% of the list price based on 235 sales in December 2024. In Santa Clara County, the median single-family home cost $1,810,000 and sold in 11 days for 105% of the list price based on 559 sales in December."
C.A.R. expects market activity will likely slow in the coming months as mortgage rates remain elevated. The 30-year, fixed-mortgage interest rate averaged 6.72% in December, down from 6.82% in December 2023, according to C.A.R.'s calculations based on Freddie Mac's data.
Housing inventory at the statewide level could inch up further in the first quarter. The Southern California region could experience some adverse effects on supply in the next few months due to the devastating wildfires but may see some improvement in the second half of 2025. Then there is also political uncertainty on issues affecting real estate.
"While the housing market is expected to improve further in 2025, stickier-than-expected inflation, the ongoing insurance crisis, and policy changes under the new White House administration are some of the hurdles that could present challenges for the market in the upcoming year," said C.A.R. Senior Vice President and Chief Economist Jordan Levine.
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Variations of this article have appeared in local area newspapers.
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