After a strong December, California's housing market carried the momentum through to the new year, with double-digit price and sales growth year-over-year in January 2021. A California Association of Realtors report revealed that existing single-family home sales totaled 484,730 in January 2021, up 22.5% year-over-year. The CAR also reported that the statewide median home price in January was $699,890, up 21.7% year-over-year.
"Despite an economy that's slow to recover, the momentum from late last year continued into January, driven by strong growth in California's core housing markets, especially in the San Francisco Bay Area, where the higher cost areas experienced the most sales growth," said CAR president Dave Walsh, vice president and manager of the Compass San Jose office. "Home prices continued to power through the traditional slow season in January with the largest annual price gain in nearly seven years."
Despite seeing growth on a year-over-year basis, January home sales were down 4.9% from December. Additionally, the statewide median home price was down 2.5% from December.
Year-over-year growth was attributed to low rates and tight supply. The CAR reported that the double-digit increase from last year was the sixth in a row and the largest since February 2014.
"With the COVID-19 vaccine continuing to roll out, another fiscal stimulus relief package likely on the way and historically low-interest rates, the housing market will continue to thrive," said CAR vice president and chief economist Jordan Levine. "The market outlook is stronger than previously projected as buyer demand continues to outstrip supply, but we do expect the current robust market growth to decelerate later this year as the housing shortage intensifies."
According to the report, active listings fell 53.4% from last year and continued to drop more than 40% on a year-over-year basis for the eighth straight month. On a month-to-month basis, for-sale properties dropped 10.7% in January.
Housing inventory woes are continuing across the state with the exception of the Bay Area.
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