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The California Association of Realtors reported that mortgage rates that surged to their highest levels since late last year hampered California home sales in May on both a monthly and an annual basis. The statewide median home price exceeded $900,000 for the second month to set another record high. 

California’s closed escrow sales of existing, single-family detached homes totaled a seasonally adjusted annualized rate of $272,410 in May, according to CAR from more than 90 local Realtor associations and MLSs statewide. 

May’s sales pace dipped 1.1% from the revised 275,540 homes sold in April and was down 6.0% from a year ago when a revised 289,860 homes were sold annually. The sales pace remained below the 300,000 threshold for the 20th consecutive month, and year-to-date home sales were flat.

In the Central Valley overall, the price grew 4.6% from year to year in May. Prices rose from $485,000 in May of 2023 to $507,080 in May 2024, but sales remained at a stagnant 0%. 

To break it down in specific sections of the Central Valley, Fresno County prices rose 1.2% from year to year in May. Prices rose from$420,000 in May 2023 to $425,000 in May 2024, and sales dropped 8%. 

King’s County prices dropped -2.4 % from year to year in May. Prices decreased from $370,000 in May 2023 to $361,000 in May 2024, and sales rose 8.2%. 

Madera County prices rose 4.2 % from year to year in May. Prices increased from $411,610 in May 2023 to $429,000 in May 2024, and sales rose 1.5%. 

Finally, Tulare County prices rose 2.3 % from year to year in May. Prices increased from $375,060 in May 2023 to $383,640 in May 2024, and sales rose 14.3 %. 

“California home sales stalled in May as mortgage rates reached the highest level in five months and may have contributed to the slowdown in market activity,” said CAR President Melanie Barker, a Yosemite Realtor, in a news release. “However, a moderation in interest rates in the past couple of weeks and recent improvements in housing inventory could create an opportunity for motivated buyers to reenter the market before the homebuying season peaks.”

The statewide median price set another record high in May, growing 8.7% from $835,280 in May 2023 to $908,040 in May 2024, exceeding the $ 900,000 benchmark for the second month. California’s median home price was 0.4% higher than April’s $904,210. The year-over-year gain was the 11th month of annual price increases for the Golden State. Seasonal factors and tight housing supply conditions put upward pressure on home prices and will continue to in the coming months.

Sales in the million-dollar-and-higher market segment rose 15.5% year-over-year in May, while sales in the sub-$500,000 segment declined by 12.2%. Sales of homes priced above $1 million now make up 36.6% of all sales ― the biggest share in at least the last five years.

“A persistent shortage of homes for sale, particularly in the more affordable market segments, continued to push California’s median home price to new record highs over the past couple of months,” said CAR Senior Vice President and Chief Economist Jordan Levine in a news release. “With mortgage rates returning from their recent peaks and market competition heating up, the statewide median price may have more room to grow before the summer ends.”