T
he California housing market showed remarkable resilience in 2024, defying expectations and ending the year on a strong note. Existing single-family home sales experienced a notable increase, with the median home price also growing, marking a positive close to a challenging year.

    According to the California Association of Realtors (C.A.R.), December 2024 existing single-family home sales reached a seasonally adjusted annualized rate of 268,180, up 0.1% from November and a significant 19.8% from December 2023. For the entire year, sales were also up by 4.3% compared to 2023.

    The median price of a single-family home in California climbed to $861,020 in December, a 1% increase from November and a 5% increase compared to December of the previous year. This marks the 18th consecutive month of year-over-year increases, indicating steady growth in the market.

    Regional differences were notable, with the Central Coast experiencing the biggest jump in sales at 20.5%, followed by Southern California at 16.3%. The San Francisco Bay Area and Central Valley also saw substantial increases, while the Far North region had more moderate growth.

    The high-end market played a significant role in price growth, with sales increasing by 28.7% year-over-year in December. However, this dynamic has implications for first-time home buyers, who often compete in the lower segment of the market.

    Inventory and time on market also showed some changes, with the unsold inventory index decreasing from 3.3 months to 2.7 months, but still higher than last year's 2.6 months. The median time it took to sell a house increased slightly from 26 days in December 2023 to 31 days in December 2024.

    While the market showed resilience in 2024, challenges remain ahead in 2025, including high mortgage rates, inflation, and the insurance crisis. A balanced approach of optimism and caution is required for the coming year.

    Key takeaways include:

    * Strong finish: The California housing market closed 2024 with strong sales and price gains.

    * Regional variations: Different regions of California are experiencing varying degrees of recovery.

    * High-end dominance: The high-end market is playing a crucial role in price growth.

    * Challenges ahead: The market still faces significant challenges in 2025, including high mortgage rates, inflation, and the insurance crisis.

    Detailed data tables provide a more granular look at how the market performed across different areas.