According to the latest statistics from the California Association of Realtors (C.A.R.), following consecutive increases in home sales in January and February, home sales in the California real estate market in March saw a year-on-year decline for the first time. Calculated at a seasonally adjusted annual rate, the total sales of existing single-family homes in March were 267,470 units, down 7.8% from the previous month and 4.4% from the same period last year.
Despite the decrease in sales volume, home prices continued to rise. On the contrary, in March, the statewide median home price showed a strong upward trend compared to the same period last year, surging from $793,260 in March 2023 to $854,490 in March this year, a significant increase of 7.7%. This marks the ninth consecutive month of year-on-year price increases in California.
Moreover, in the past few months, the sales of homes priced at $1 million or above in California have fared better than those of lower-priced homes. In March, the market sales volume of million-dollar homes continued to show a higher year-on-year growth rate, while sales volume below $500,000 declined again. This shift in sales composition continues to support the rise in the statewide median home price.
Data indicates that the average median home price in all major regions of California has increased compared to the same period last year. The San Francisco Bay Area saw the largest annual price increase, rising by 15.5% from March last year, while Southern California rose by 11.1%. The Far North region, Central Valley, and Central Coast regions also experienced moderate price increases.
Additionally, the average price per square foot of existing single-family homes in California is $424, higher than $387 in March last year.
Melanie Barker, President of C.A.R., noted that despite the decline in home sales in March, the continuous rise in California home prices and the speed of home transactions demonstrate the competitiveness of the state’s real estate market.
The trends in the California housing market have always been closely watched. According to Jordan Levine, Vice President and Chief Economist of C.A.R., “Although home sales in the coming weeks may be hindered by rising interest rates, the rebound in recent months indicates that we may see a resurgence in real estate market sales once the market digests the latest changes in inflation.”
C.A.R. statistics found that with more sellers listing their homes on the market before the spring buying season arrives, the statewide increase in active listings has grown for the third consecutive month, with a double-digit increase. The sharp increase in new housing supply, coupled with a moderate slowdown in housing demand last month, has led to an overall improvement in active listings.