CA Home Sales Reach Highest Level in Six Months

California existing home sales rebounded in January to the highest level in six months as mortgage rates pulled back sharply at the end of 2023, the California Association of Realtors (C.A.R.) said Friday. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 256,160 in January, a 14.4% increase from December.

Although the increase in January was the first year-over-year sales gain in 31 months, the sales pace stayed below the 300,000-unit threshold for the 16th straight month and will likely remain there throughout the first quarter, according to C.A.R. With interest rates moderating sharply at the end of 2023 and nearly 100 basis points below the most recent peak, home sales should continue to grow year-over-year in February, but the improvement will be modest.

“It’s encouraging to see California’s housing market kick off the year with positive sales growth in January,” said C.A.R. president Melanie Barker. “While we’ll likely experience some ups and downs in home sales in the coming months as rates continue to fluctuate, the lending environment is expected to be more favorable in 2024, so the market should see more pent-up demand translate into sales.”