California Home Sales Rebound in October

Main Highlights:

1. Sales Recovery:
   • October marked the fastest year-over-year sales pace in 40 months, reversing two months of declines.
   • Seasonally adjusted annualized sales rate: 264,870 homes.
   • Sales increased 4.7% from September and 9.5% year-over-year due to a low sales base in 2023.
2. Median Price Growth:
   • Statewide median price rose 2.4% month-over-month to $888,740 and 5.8% year-over-year.
   • Largest monthly price gain in 45 years and the 16th consecutive month of annual price increases.
   • Future price moderation expected with the off-season approaching.
3. Regional Performance:
   • Four out of five regions saw year-over-year sales increases:
     • San Francisco Bay Area: +16.2%
     • Central Valley: +13.7%
     • Central Coast: +13.0%
     • Southern California: +11.9%
   • Far North was the only region with a decline (-6.7%).
4. County-Level Trends:
   • 38 of 53 counties experienced sales increases; 30 counties saw gains above 10%.
   • Largest sales gains:
     • Del Norte: +80.0%
     • Madera: +41.2%
   • Largest declines:
     • Trinity: -66.7%
     • Lassen: -45.5%
5. Inventory and Listings:
   • Unsold Inventory Index: 3.1 months (down from 3.6 months in September, up from 2.7 months a year ago).
   • Total active listings rose 31.5% year-over-year, though growth is slowing.
   • New active listings increased for the 10th straight month, with 42 of 52 counties reporting gains.
6. Market Conditions:
   • Homes took an average of 25 days to sell, up from 20 days a year ago.
   • Sales-to-list-price ratio: 99.9% (down slightly from 100.0% in October 2023).
   • Median price per square foot: $442, up from $419 last year.
7. Interest Rates:
   • 30-year fixed-mortgage rate averaged 6.43% in October, down from 7.62% in October 2023.
8. Economic Outlook:
   • Despite rising rates, motivated buyers drove October’s rebound.
   • Pending sales increased double digits, signaling positive momentum for November.
   • Federal Reserve rate cuts may encourage seasonal buying, though gradual rate declines present challenges.

This rebound highlights resilient buyer demand despite higher mortgage rates, with inventory and prices showing growth statewide.