California Home Sales Surge in January, Bay Area Sees 6.2% Growth

California Home Sales Surge in January, Bay Area Sees 6.2% Growth

California’s housing market saw a significant uptick in activity in January, with home sales statewide jumping by double digits. According to data from the California Association of Realtors, sales in January increased by 14.4% compared to the previous month, marking the highest level of activity in six months.

The rebound in sales was attributed to a sharp drop in mortgage rates at the end of 2023, making the lending environment more favorable for buyers. All major regions in the state saw an increase in sales, with the San Francisco Bay Area recording a 6.2% growth from the prior year.

In terms of prices, the median home price in California rose by 5% year-over-year, reaching $788,940. The Bay Area saw a more significant increase, with a 10.6% jump in median price to $1.1 million.

Santa Clara County experienced a 19.7% increase in home sales compared to January 2023, while San Mateo County saw a drop in sales activity but a significant increase in median price. Both counties also saw a bump in new listings, indicating a positive trend for the market.

Looking ahead, experts predict that rates will decline later this year, potentially leading to more sellers putting their homes on the market. Despite concerns about inflation, the Federal Reserve is expected to lower rates, providing a boost to the real estate market.

Overall, 2024 is forecasted to be a better year for the real estate market, with improvements in rates and inventory expected to drive more sales and activity.