State home sales drop despite favorable interest rates

Sales of existing single-family homes in California during September totaled 253,010, down 3.4 percent from August but up 5.1 percent year-over-year.

Statewide, the median home price last month was $868,150, down 2.3 percent from the previous month but up 2.9 percent from in September 2023, the California Association of Realtors reported.

During the first eight months of the year, home sales were up nearly one percent.

The sales figures are annualized, meaning they represent what would be the total number of homes sold during 2024 if sales maintained their September pace throughout the year. The report is based on data provided by 90 realtors statewide.

Sales hit their lowest point in nine months despite some of the lowest interest rates this year.

“Economic uncertainty and hopes for lower interest rates may have caused many buyers to hold off on a home purchase,” said Jordan Levin, the association’s chief economist, in a statement. “As a result, home sales declined for the second consecutive month, reaching their lowest level this year.

Interest rates are expected to remain inconsistent for the time being, Levine said.

In the Inland Empire, home sales were down 9.7 percent from August but were essentially unchanged year-over-year, while the $579,990 median price was down nearly one percent month-over-month but up 5.5 percent from August 2023, the association reported.