Based on the latest data from the California Association of Realtors, existing home sales in the state rebounded in January 2024 to their highest level in six months, following a sharp pullback in mortgage rates towards the end of 2023. In January, closed escrow sales of existing, single-family detached homes in California reached a seasonally adjusted annualized rate of 256,160, as reported by C.A.R. This figure represents the total number of homes sold throughout 2024 if sales maintained the pace seen in January and is adjusted for seasonal factors. Compared to December’s revised figure of 224,000, January’s sales pace surged by 14.4%, although it was down by 5.9% from a year ago. This marks the first year-over-year sales gain in 31 months. However, the sales pace remains below the 300,000-unit threshold for the 16th consecutive month and is expected to stay below this level in the first quarter of 2024. While home sales are likely to continue growing year-over-year in February, the improvement is anticipated to be modest due to fluctuations in interest rates. Melanie Barker, President of C.A.R., expressed optimism about the positive sales growth in January, anticipating some fluctuations in the coming months as interest rates continue to vary. She noted that the lending environment is expected to be more favorable in 2024, translating into more pent-up demand materializing into sales. Despite a 3.8% decrease in California’s statewide median home price from December to January, dropping to $788,940, there was a 5.0% year-over-year gain, marking the seventh consecutive month of annual price increases. This decline was mainly attributed to seasonal factors, with January being the first time in ten months that the median price fell below the $800,000 benchmark. With mortgage rates softening since mid-October, home prices are expected to maintain their upward momentum, with a mid- to single-digit year-over-year growth rate anticipated in the early part of 2024. Jordan Levine, Senior Vice President and Chief Economist at C.A.R., highlighted the increase in new active listings for the first time in 19 months as positive news for the California housing market. He noted that while rates climbed to a two-month high earlier due to inflation concerns, they are expected to decline later in the year, leading to improvements in available inventory throughout 2024. Other key points from C.A.R.’s January 2024 resale housing report include: – Sales in all major regions rose in January on a year-over-year basis, with the Central Valley region recording the largest increase. – Fourteen of the 52 counties tracked by C.A.R. registered a sales decline from a year ago. – All major regions recorded an annual increase in their median prices, except the Far North. – Forty-one counties across the state registered a median price higher than a year ago. – Unsold inventory statewide increased on a month-over-month basis but declined from January 2023. – Active listings at the state level declined again on a year-over-year basis but increased from a month ago. – New active listings at the state level increased from a year ago for the first time in 19 months. In January, the median number of days to sell a California single-family home was 32 days, with a sales-price-to-list-price ratio of 98.9% and an average price per square foot of $386. The 30-year fixed-mortgage interest rate averaged 6.64% in January.