California's housing market has always been dynamic, and, so far, 2024 is no exception. With ever-changing economic factors, buyer behavior, and inventory levels, staying informed is crucial for single-family rental investors. This article takes a look at the latest trends in California real estate based on HouseCanary's Market Pulse Report for June 2024.
Market shifting toward balance
California's housing market appears to be finding a new equilibrium. While seller dominance remains prominent, there are signs of a cooling market. New listings, though down slightly from the previous month, are up 12.1% year-over-year, indicating a potential increase in available inventory. This could be a welcome change for buyers who have faced fierce competition in recent years.
HouseCanary's data reveals a similar trend in listings under contract. While decreasing slightly from May, they still show a 5.8% increase compared to June 2023. This suggests healthy buying interest, but with a less frenetic pace.
Price growth, but at a slower rate
California's median home prices haven't dipped, but the rate of growth has slowed. The median new listing price sits at $899,900, a 2.9% increase from the previous month. This is still a significant year-over-year increase of 2.8%, but is also moderate compared to past months' growth.
Price per square foot is similar. Both new and active listings show a year-over-year increase, but with a slower pace compared to previous months. This trend is also reflected in closed median prices, which showcase an 11.9% annual increase, yet still a slight decrease compared to May 2024.
Finding common ground in negotiations
The data suggests a potential shift in the balance of power between buyers and sellers. The number of listings with price changes has risen significantly year-over-year. This indicates that some sellers might be adjusting their initial asking prices to meet market realities.
The median days to first price reduction remains steady, suggesting that motivated sellers are willing to adjust pricing relatively quickly. Months of inventory, a key metric for market balance, have also increased year-over-year, though remaining relatively low.
Looking forward: data drives decision-making in a changing market
California's real estate market continues to evolve. While seller dominance may be easing slightly, competition is likely to remain a factor. For both buyers and sellers, having access to comprehensive and up-to-date market data is essential.
Making informed decisions in a dynamic market requires access to the most accurate and up-to-date data. HouseCanary offers a suite of data products designed to give you a comprehensive understanding of the California housing market:
- Automated Valuation Models (AVMs): The most accurate pre-list AVM in the industry, HouseCanary's AVMs provide reliable property valuations.
- Market Insights: Gain deep dives into specific neighborhoods and markets, including trends, forecasts, and risk assessments.
- Bulk Property Data: Access comprehensive property data sets for investment analysis at scale.
- Real Estate Data API: Integrate real estate data seamlessly into your workflow or platform.
- Portfolio Monitoring: Track the performance of your property or loan portfolio and make data-driven decisions.
By leveraging HouseCanary's AI-powered real estate data and insights, investors and lenders can confidently navigate the California real estate market. Stay ahead of the curve and make informed decisions with the power of data by your side. Find additional market reports here.
Data Source: This blog post utilizes data from HouseCanary's Market Pulse Report for California, specifically for the week ending June 21st, 2024.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Always consult with a qualified professional before making investment decisions.
