California Housing Market Update: Key Insights & Trends for July 2024

California Housing Market Update: Key Insights & Trends for 2024

Welcome to my comprehensive update on the California housing market for July 2024. In this post, we’ll dive into the latest trends, key statistics, and essential insights that can help both buyers and sellers navigate the market. Whether you're a first-time homebuyer, seasoned investor, or curious about the current market conditions, this update is for you.

1. California Median Sales Price Drop

The California median sales price recently dropped to $972,000, an 8% decrease from May and a 7.5% decline from June 2023. This drop could signal a more affordable market, presenting a potential opportunity for buyers waiting on the sidelines.

2. Inflation and Interest Rates Update

Inflation has been a significant factor in the housing market, but there’s good news—it's finally easing. Inflation dropped below 3% year-over-year in June, the first decrease since post-pandemic price rises. With interest rates now around 6.86% for a 30-year fixed conventional loan, and projections of potential rate cuts in September 2024, more buyers are re-entering the market.

3. Home Sales and Pending Sales in June 2024

In June 2024, approximately 270,200 homes were sold in California, marking a 2.7% decrease from the previous year. However, pending sales have risen by 8%, suggesting a positive trend for the coming months. This uptick indicates growing buyer confidence, spurred by the declining interest rates and increased inventory.

4. Housing Supply and New Construction Trends

The housing supply has seen a significant increase, with active listings up 36% year-over-year. This is the sixth consecutive month of growth in active listings, providing more options for buyers. Additionally, new construction projects, particularly multi-family developments, have surged by 22%, helping to address the housing crisis and provide more rental options.

5. Spotlight on Chino Hills

Chino Hills stands out this month with a median sales price of $1.1 million, up 16.6% from last year. The area has seen an increase in active listings by 32%, reflecting a healthy market with more homes available for prospective buyers.

6. Addressing the Homelessness Crisis

Governor Gavin Newsom has implemented new policies to tackle the homelessness crisis in California. The state plans to dismantle homeless encampments and provide housing solutions.

7. County-Specific Insights: Riverside, Orange, Los Angeles, and San Bernardino

• Riverside County: 1,221 homes sold, median price $642,000, active listings up 38%
• Orange County: 1,025 homes sold, median price $1.45 million, active listings up 24%
• Los Angeles County: 3,227 homes sold, median price $952,000, active listings up 38%
• San Bernardino County: 682 homes sold, median price $522,000, active listings up 44%

Each county presents unique opportunities and challenges, making it essential for buyers and sellers to stay informed about local trends.

8. California Labor Market Update

California's labor market added 22,250 new jobs in June, making it the third-best month for job creation this year. Most of these new jobs were in healthcare and the public sector. However, there are some signs of a slowdown, with industries like manufacturing and administrative support losing jobs. The state's unemployment rate has been above 5% for the last 10 months, suggesting that people are taking longer to find new jobs even though there hasn't been a significant increase in layoffs. 

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The California housing market is showing signs of stabilization, with promising trends for buyers and sellers alike. With median prices adjusting, more homes on the market, and easing inflation, now could be a strategic time to make your move in real estate. For personalized advice or to discuss your real estate needs, feel free to contact Michelle here.