IE Business Daily Business news for the Inland Empire.
High mortgage rates, and the wildfires that wreaked devastation on much of Southern California, are being blamed for a drop in the state’s housing market during the first month of 2025.
Sales of existing single-family homes totaled 254,110 in January, down 10 percent from December and down 1.9 percent year-over-year, according to the California Association of Realtors.
The statewide median home price – $838,850 – was down 2.6 percent from December but up 6.3 percent from December 2023, the Los Angeles-based association reported.
The statewide sales figures are annualized, meaning they indicate what would be the total number of homes sold this year if sales maintained the January pace during the next 11 months. They are seasonally adjusted.
January’s sales level was the lowest recorded in California in 13 months, while the double-digit month-to-month sales decline was the largest drop in that category in the past two and half years.
Despite all of that, the association struck a slightly positive regarding the market’s short-term future.
“Mortgage rates have been trending downward in the past four weeks since reaching their recent peak, which should help improve home sales moving forward,” the report states. “However, closed sales will likely remain soft in February and March, particularly since the aftermath of the Los Angeles area wildfires will continue to slow market activity.”
In the Inland Empire, the median price of a single-family home in January was $600,000, a slight increase compared with December but a 7.3 percent increase from January 2024. Sales in Riverside and San Bernardino counties were down 21.1 percent between December and January, and declined 3.6 percent year-over-year, the association reported.
