California Housing Market Sees June Slump; Has the Spring been Set for a Dynamic Surge? 

Interest Rates Ease as Home Inventory Climbs, Setting the Stage for Market Resurgence

The California housing market took a bit of a breather in June, with the median price slipping slightly from May's highs. June's price tag settled at $900,720, marking the third consecutive month it surpassed the $900k mark. Now, that's still a good chunk of change, especially considering it's a 7.5% hike from last June's $837,850. This is the twelfth straight month of year-over-year gains, though the pace is cooling off like the shade under an Orange tree in the California sun. The second half of the year might see more of these gains, but they'll likely follow the classic seasonal rhythm.

“With interest rates coming down to the lowest levels since February and the availability of homes loosening up further in the last few months, the housing market is gearing up for another run in the second half of the year. We could see a pickup in market momentum at the start of the third quarter if rates decline in a more sustainable way in the coming weeks and buyers decide to take advantage of lower costs of borrowing.”  C.A.R. President Melanie Barker, a Yosemite REALTOR

Now, as interest rates take a little dip, the housing market seems to be stretching out and getting ready for another run. With more homes available and rates dropping to their lowest since February, buyers might be tempted to jump in and take advantage of those sweet, sweet borrowing costs. C.A.R. President Melanie Barker suggests we might see the market pick up speed in the third quarter if rates keep dropping. So, if you're looking to buy, it might be time to start those engines and hit the gas. Just like a Fourth of July BBQ, it’s all about timing – so make sure you’ve got your sparklers ready to light up the market,  with prices rocketing up like bottle rockets and inventory sparking interest like sparklers on a summer night."

“Home sales pulled back in June as interest rates remained volatile at the end of the second quarter. The average 30-year fixed rate mortgage began to decline since early July though and recently reached the lowest level in five months as the inflation cooling trend continued,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While it will take a couple of more reports for the Federal Reserve to begin cutting rates, housing affordability for qualified buyers should begin to see some improvement in the coming months.” 

Over on the inventory side of things, the unsold inventory index crept up to 3.0 months in June from May's 2.6 months, hinting at a more relaxed market. More homes are hitting the shelves across most counties. While higher-priced properties are still riding high, accounting for over a third of all sales, the more affordable segment is taking a back seat, with million-dollar homes holding onto the biggest piece of the pie. C.A.R.'s Senior VP, Jordan Levine, says interest rates have been on a wild ride, but recent declines could mean more folks can afford a slice of the California dream soon.

And now for the latest data on Los Angeles County real estate trends:

Single family homes  |  Los Angeles County | June 2024

New Listings: 4,332 (Up 4.13% year over year)

Homes Sold: 2,930 (DOWN 11.59% year over year)

Median List Price: $989,950 (Up  7.6% year over year)

Median Sales Price: $1,010,000 (Up 6.32% year over year)

Median Days on Market:  15 (UP 15.38% year over year)

Average List Price: $1,421,755 (Up 3.63% year over year)

Average Sales Price: $1,427,384 (Up 3.75% year over year)

Average Days on Market: 27 (Down 6.9% year over year)

List/Sell Price Ratio: 101.9% (Up .17% year over year)

Condo homes  | Los Angeles County | June  2024

New Listings: 1,765 (Up 10.87% year over year)

Homes Sold: 1,047 (Down 14.18% year over year)

Median List Price: $706,400 (Up 5.59% year over year)

Median Sales Price: $720,000 (Up 5.11% year over year)

Median Days on Market: 18 (Up 28.57% year over year)

Average List Price:  $865,368 (Up 3.3% year over year)

Average Sales Price: $865,610 (Up 3.26% year over year)

Average Days on Market: 33 (UP 3.13% year over year)

List/Sell Price Ratio: 100.6 (Down .49% year over year)