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The California Association of Realtors (C.A.R.) announced Thursday that California home sales dipped last month to their lowest level in 16 years, hampered by higher interest rates.

Sales in the Golden State for November were down 7.4% on a monthly basis and 5.8% on an annual basis — the 29th straight annual decline.

“Elevated mortgage interest rates and a persistent shortage of homes for sale hindered home sales in November,” said 2024 C.A.R. President Melanie Barker, a Realtor in Oakhurst. “With mortgage rates dropping to the lowest level in four months in recent weeks and the Federal Reserve indicating it plans to cut rates more than anticipated in 2024, more prospective homebuyers could reenter the market early next year.”

Fresno’s median home sale price in November 2023 was $415,000, up 5.6% compared to November 2022 when it was $393,000. Prices were up 1.2% on the month.

Fresno area sales activity in November dropped 14.7% compared to October and 17.3% annually. 

Tulare’s median home sale price in November was $375,000, up 4.6% monthly and 3.6% annually. Monthly sales increased 1.8 %, but dropped 2.3% annually. 

Madera’s median home sale price in November 2023 was $414,500, up 0.4% compared to November 2022 when it was $413,000. Sale prices for November fell 4.7% on an annual basis.

Monthly sales increased 3.1 %, and rose 16.3 % annually. 

King’s median home sale price in November 2023 was $355,000, whereas in November 2022, it was $325,000. Home sale prices for November decreased 1.4 % at a monthly rate and a 9.2 % increase annually. Monthly sales dropped 43.4 %. Annually, sales fell 27.7 %. 

At the regional level, home prices increased in all major regions from a year ago. All areas had at least a 2.7% yearly increase in the median prices last month, with Southern California (9.9%) the biggest year-over-year gain of all regions. The Central Coast region came in second with an increase of 6%, followed by the Central Valley (5.5%), the San Francisco Bay Area (4.4%), and the Far North (2.7%).

November’s median home price rose from a year ago for the fifth straight month. California’s statewide median price decreased 2.2% from October’s $840,360 to $822,200 in November and rose 6.2% from a revised $774,150 recorded a year ago. 

The monthly price decline was the largest in 10 months but was smaller than the October-to-November average price adjustment of -2.5% observed in the last five years. The year-over-year price gain was the largest in 18 months. 

Housing inventory improved due to the sales decline rather than increased active listings. The statewide unsold inventory index rose 11.1% month-over-month to three months and fell below last year’s level by -6.3%. Active listings at the state level dipped again on a year-over-year basis for eight straight months, and the decline in each of the last seven months all registered more than 10% year-over-year. 

“While sales have been weak for the past several months, a tight supply of homes for sale is keeping home prices from falling,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine in a press release. “Going into 2024, the recent decline in mortgage rates, along with the upward momentum in home prices, could motivate more would-be sellers to list their homes for sale in the spring homebuying season.”