California Home Sales Dip in July as Median Price Falls Below $900,000
Event summary
- California home sales totaled 263,170 in July, down 6.0% from June but up 1.1% year-over-year.
- The statewide median home price declined to $887,680, down 1.9% from June and up 0.3% year-over-year.
- Housing inventory loosened slightly in July, with the Unsold Inventory Index increasing from 3.1 to 3.4 months.
- Mortgage rates averaged 6.54% in July, briefly reaching a 12-month high before pulling back.
- Sales remained above year-ago levels in five of seven price segments, led by homes priced at $2 million and above.
The big picture
California's housing market continues to grapple with affordability challenges and elevated mortgage rates, which have weighed on buyer demand. The market's resilience is being tested as it searches for sustained momentum, with regional disparities becoming more pronounced. The recent decline in mortgage rates offers some relief, but broader economic concerns and geopolitical tensions remain headwinds for the near term.
What we're watching
- Interest Rate Impact
- How sustained high mortgage rates will affect housing demand in the coming months.
- Inventory Trends
- Whether the slight loosening of housing supply will continue or reverse in the off-peak season.
- Regional Disparities
- The pace at which regional price and sales trends diverge, particularly in high-demand areas like the San Francisco Bay Area.