T
he California housing market is experiencing its largest annual sales increase since June 2021, with single-family home sales growing by 19.5% year-over-year. However, this growth remains below pre-pandemic levels, with total annualized home sales at 267,800 units compared to the typical 400,000 units before COVID-19.

    Key Takeaways:

    * November 2024 saw a 19.5% rise in home sales, the highest since June 2021.

    * Total annualized home sales are below pre-pandemic norms, standing at 267,800 units.

    * Median home price dropped by 4% from October to $852,880 but rose 3.8% year-over-year.

    Regional Variations:

    * The Central Coast led in year-over-year sales growth with a 21.7% increase and prices rose widely across major regions.

    * Elevated mortgage rates averaging 6.81%, compounded by limited affordability, continue to create hurdles for buyers.

    Inventory Trends:

    * Unsold inventory index improved by 13.8%, marking the ninth straight month of double-digit listing growth.

    * Active home listings surged 27% year-over-year, indicating improving market balance.

    Regional Insights:

    * Central Coast: The strongest surge in sales with a 21.7% year-over-year increase and median price climb of 7.9%.

    * San Francisco Bay Area: Demonstrated a 14% sales growth, with the median home price increasing by 5.3%.

    * Far North: Sales inched up by 5.2%, but median prices remained flat compared to a year ago at $375,000.

    Price Trends:

    * November's median home price dipped compared to October, but year-over-year numbers reveal a gradual upward trajectory fueled by demand in higher-end markets.

    * The largest annual price growth occurred in Santa Barbara, with a 51.9% surge, predominantly due to luxury home sales.

    Market Influencers:

    * Continued high mortgage rates, averaging 6.81%, restrict affordability for many prospective buyers.

    * Affordability will likely remain a persistent challenge moving into 2025, even as mortgage rates potentially moderate further.

    Why Inventory Matters:

    * The number of days it took to sell a home rose to 26 days in November, compared to 21 days in November 2023.

    * Unsold inventory index improved for the ninth consecutive time, reflecting stronger listings and providing buyers with more options.