California’s housing market remained sluggish in July despite the peak summer season, according to the California Association of Realtors (CAR). The group reported on August 19 that closed escrow sales of existing single-family homes totaled 261,820 in July.
That figure marked a 1% decline from June’s 264,400 transactions and a 4.1% drop from 272,990 sales in July 2024. July became the fourth consecutive month in which sales fell compared to the same month a year earlier.
CAR attributed the slowdown to persistently high mortgage rates and broader economic uncertainty, noting that many potential buyers are choosing to wait for clearer market signals. For the first time in six months, cumulative sales for the year turned negative, down 0.4% year-to-date. Monthly sales also stayed below the 300,000 mark for the 34th consecutive month.
“The housing market is seeing a gradual slowdown in both sales and prices, as buyers wait on the sidelines for greater clarity,” CAR said.
The Unsold Inventory Index (UII), a measure of housing supply, stood at 3.7 months in July, slightly lower than June’s 3.8 but higher than 2.9 in July 2024. Inventory has now risen year-over-year for 17 straight months.
Total listings jumped 37.7% compared to last year, reaching the highest level in 69 months. However, the pace of growth has slowed for the past three months.
The statewide median home price fell to $884,050 in July, down 1.7% from June and 0.3% from July 2024. This was the lowest level in five months and ran counter to the long-term pattern, where prices typically rise 0.3% between June and July.
Experts said high interest rates and economic concerns continue to dampen demand and weigh on prices.
In the Los Angeles metro area, the median home price slipped to $845,500, down 0.3% from June and 0.4% year-over-year. However, within Los Angeles County, the median rose to $911,360, up 0.9% from June and 0.3% from last year, suggesting demand in the county remains relatively strong.
In Orange County, the median price fell sharply to $1.4 million, down 4.8% from June, though still 0.7% higher than a year earlier.
Jordan Levine, CAR’s chief economist, noted that the sales-price ratio dropped to its lowest point in 30 months, another sign of cooling conditions.
“The market is clearly showing signs of cooling, with slower sales and easing prices,” Levine said.
Still, some experts pointed to recent declines in mortgage rates, which fell to their lowest level since October 2024. Mortgage applications have started to rise, raising hopes that demand could strengthen in the coming months.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
