The Southern California housing market saw a surge in activity, recording robust sales volume for the first time in a while, as price increases slowed and mortgage rates stabilized. According to the California Association of Realtors (CAR) “Monthly Housing Sales and Price Trends Report” released on October 20, home sales of single-family homes in California (seasonally adjusted annualized rate) reached 277,410 units in September, a 6.6% increase from 260,340 units in the same period last year.

This also reflects a 5.0% rise compared to 264,240 units in the previous month, marking the highest sales volume in the past seven months. Among the 53 Southern California counties, 40 saw year-over-year sales volume increases in September, with 25 of those recording double-digit growth. Only 10 counties experienced a decline in sales compared to the previous year. However, California’s housing market has seen monthly sales volumes below 300,000 units for 36 consecutive months since September 2022, including last September. During this period, home prices rose in 27 counties and fell in 24 counties.

Price growth also noticeably slowed in September. The median price of single-family homes sold in California was $883,640, down 1.7% from $899,130 in August. Compared to $868,150 in September of the previous year, prices rose modestly by 1.8%. Notably, the median price for single-family home sales in California has exceeded $800,000 for 29 of the past 30 months, indicating that prices remain at elevated levels. (See chart) The median sales price for condominiums in California was $650,000 in September, a 1.5% decrease from $660,000 in the same period last year and roughly flat compared to $649,950 in August.

Condo sales volume rose by 0.3% month-over-month and surged by 13.5% year-over-year. The average interest rate for a 30-year fixed mortgage in September was 6.35%, slightly higher by 0.17 percentage points compared to 6.18% a year ago but maintaining a stable level. CAR President Heather Ozur stated, “With home price growth slowing and mortgage rates recently trending downward, buyers—particularly first-time buyers—are flooding the market, bringing renewed vitality to the housing sector.”

She added, “With expectations of further declines in mortgage rates, the sales outlook for the fourth quarter of this year is promising.” In Southern California, the housing market also saw robust sales volume in September as price growth slowed. The median home sales price in Southern California was $869,259, down 0.5% from $873,480 in August but up 2.3% from $850,000 in September of the previous year. Meanwhile, Southern California home sales volume increased by 4.5% month-over-month and 11.3% year-over-year. By county, the median home sales price in Los Angeles County in September was $983,330, up 5.6% from $930,720 in August, approaching $1 million. Compared to $960,370 in September last year, prices rose by 2.4%. LA County home sales volume surged by 20.9% month-over-month and 13.8% year-over-year. Orange County’s median sales price in September was $1,401,250, the highest among Southern California counties.

This reflects a 1.2% increase from $1,385,000 in August and a 0.3% rise from $1,397,450 in September last year. Orange County sales volume decreased by 2.1% month-over-month but grew by 10.8% year-over-year. San Diego County’s median sales price in September was $990,000, nearing $1 million. Ventura County recorded a median sales price of $900,000, while Riverside County’s was $624,000. San Bernardino County had the lowest median sales price in Southern California at $500,030, but it surpassed the $500,000 mark in September.