An existing single-family home in San Diego County saw its price increase from $1.01 million to $1.05 million in the previous month, according to the California Association of Realtors, which made the announcement on Thursday.
This comes at a time when the sales pace across the state fell by 5.1% in May.
In the month of May, the total number of closed escrow sales of single-family detached homes in California reached a seasonally adjusted annualized rate of 254,190.
Compared to the 267,710 homes that were sold in April, the sales pace for the previous month was 5.1% lower.
Additionally, the sales pace was 4.0% lower than it was a year ago, when 264,850 homes were sold on an annualized basis.
It had been four months since the state’s sales level had been at its lowest point. In comparison to the previous year, the decrease was the most significant since December 2023, and the monthly decrease was the first one in seventeen months.
In 2024, year-to-date sales barely surpassed the same time frame, and if the market continues to lose momentum, it is possible that in June, sales will fall below the level they reached in the previous year.
“With home prices leveling off and more homes coming onto the market, it’s a great time for well-qualified buyers to enter the market,” CAR President Heather Ozur stated. “Lower prices are making homes more affordable, and the growing inventory means buyers have more choices. It’s a rare window where people can find their ideal home at a good value — making now an ideal time to buy.”
San Diego County single-family home sales fell 7.3% between April and May, according to the CAR report, while prices rose 3.4%. In May 2024, the price of a home was $1.02 million.
In order to account for any disparities between their increases and the statewide decline in sales, localized data is not seasonally adjusted.
The California median price fell in May after hitting a new high in April, but it was still higher than the benchmark of $900,000. The median price of $900,170 last month was down 0.9% from $908,000 in May 2024 and down 1.1% from April.
The monthly decrease was less than the 1.2% increase that occurred between April and May, which was the historical average.
Numerous factors, such as high interest rates, the availability and affordability of insurance, economic uncertainty, and home sellers’ willingness to lower prices, are to blame for the statewide median price decline.
As the market moves into the second half of the year, home prices are probably going to drop even more from their record high in April. Price moderation will be influenced by seasonality, and rising housing supply will also lessen price pressure.
“Although the market has slowed in recent months, there’s potential for a rebound if economic concerns subside,” CAR Senior Vice President and Chief Economist Jordan Levine stated. “Consumer sentiment appears to have bottomed out and is now showing signs of improvement, which could support a stronger housing market in the second half of the year. Buyers may take advantage of improved conditions, including deeper price reductions and increased housing inventory.”
