1Sep2024
Here’s an overview of some of the key news from the California real estate market as of September 1, 2024:
- Market Stability: The California real estate market is showing signs of stability with home prices rising steadily, although at a slower pace compared to previous years. Median home prices have reached approximately $855,100, and while sales activity saw a decrease in recent months, the market continues to offer opportunities for sellers, particularly in competitive regions like Sunnyvale and Fremont.
- Growing Inventory: For the first time in months, inventory levels have seen a notable increase. The number of active listings rose by 21.9% in June 2024, providing buyers with more choices and easing some of the housing shortages the state has experienced. This uptick in inventory is expected to continue through the rest of the year, making it a favorable time for buyers to enter the market.
- Mortgage Rates and Buyer Power: Although mortgage rates remain higher than they were in previous years, they have stabilized around 6-7%. This stability, combined with more available homes, is helping buyers regain some purchasing power. This could make the latter half of 2024 an ideal time for potential buyers to make their move, particularly first-time homebuyers.
- Housing Affordability Challenges: While the market remains competitive for buyers, affordability remains a significant challenge in California, with high home prices and relatively slow growth in wages. However, the increase in housing inventory and potential for further stabilization in mortgage rates may offer some relief to buyers.
