State housing market stays slow

California’s housing market continued to struggle in July, plagued by higher mortgage rates and growing concerns about the economy.

Sales of existing single-family homes reached 261,820 last month, down one percent from June and a 4.1 percent decline year-over-year, according to the California Association of Realtors.

Those numbers are annualized, meaning they reflect what would be the number of homes sold statewide if sales maintained their July sales during the rest of the year. They also factor in seasonal factors that impact home sales.

July’s statewide median home price was $884,050, down 1.7 percent compared with June and down 0.3 percent in July 2024. During the first seven months of this year, home sales declined 0.4 percent.

“The housing market experienced a modest slowdown in both sales and prices in July as some buyers stepped back, waiting for more certainty in the market and broader economy,” said Heather Ozur, a Palm Springs realtor and association president, in a statement. “Mortgage rates have declined to their lowest level since last October, and that has already led to an increase in purchase applications.”

In the Inland Empire, the median price of a home was $589,020, down 2.6 percent month-over-month and 2.5 percent year-over-year. Sales were down four percent and 4.1 percent, respectively, during that time, the association reported.