Existing, single-family home sales reached a seasonally adjusted annualized rate of 269,620 in August, marking a 2.4 percent increase over July and a 1.4 percent rise from the same period last year. The statewide median home price climbed to $901,420, recovering above the $900,000 threshold after a brief dip the previous month. While these gains signal persistent demand, the market remains below the 300,000-unit sales benchmark for the 47th consecutive month.
California Home Prices and Sales Climb Despite Mortgage Rate Pressure
California’s housing market concluded the peak homebuying season with a resilient performance in August, as both sales volume and median prices rose against a backdrop of elevated borrowing costs. Despite mortgage interest rates averaging 6.67 percent, the state saw modest growth in transaction activity and property valuations compared to July.
Industry experts warn that the window for growth may be narrowing. With 30-year fixed mortgage rates recently climbing past 7 percent, affordability is under renewed strain. Jordan Levine, senior vice president and chief economist at the California Association of Realtors, noted that while buyers remained engaged throughout August, pending sales have begun to soften. Inventory levels also rose to 3.7 months, the highest in half a year, suggesting that properties are taking longer to clear as buyers react to the shifting financial landscape.
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