Written by The Business Journal Staff
Home prices continued to rise on an annual basis in November in the Central Valley, and some counties even saw upticks in sales activity, according to the latest data from the California Association of Realtors (CAR).
While two-thirds of all counties tracked by CAR saw a decrease in closed sales in November compared to last year, both Fresno and Kings counties saw the oppostie. Fresno experienced a 2.7% increase in closed sales in November, but saw a 2.3% decrease compared to October.
The median sold price of Fresno County homes was $385,000 in November, unchanged from October but up 19% from $323,500 in November 2020.
Kings County logged one of the highest annual increases in closed sales in the state last month with 27.1%. The county also saw a monthly increase of 38.5%. Prices remain strong, with the median sold price of $333,500, up 2.6% from $325,000 in October and up 25.8% from $265,000 from November 2020.
“California’s winter housing market remains unseasonably resilient, despite market challenges of a lack of inventory, modest interest rate increases, and ongoing affordability issues,” C.A.R. Vice President and Chief Economist Jordan Levine said. “While we believe the market will continue to do well in 2022 as the economy further recovers, a widening imbalance between supply and demand will put upward pressure on prices and create headwinds for housing affordability that could slow sales in the upcoming year.”
Madera County experienced a 19.3% drop in annual closed sales in November as well as a monthly decline of 33.7% The median sold price was $392,500, down less than a percentage point from $370,000 in October but up 22.7% from $320,000 last November.
Tulare County had an annual decrease of 2.6% in closed sales, while monthly sales remained unchanged. The median sold price last month was $335,000, up 3.1% from $325,000 last month and also up 19.6% $280,000 last year.
Statewide, November’s sales pace rose 4.7% on a monthly basis from 434,170 in October and was down 10.7% from a year ago, when 508,820 homes were sold on an annualized basis. Despite the fifth straight year-over-year sales decrease, statewide home sales maintained a 10.6% increase on a year-to-date basis.
“As we move further into the off-peak homebuying season, slowly rising interest rates will motivate savvy buyers to enter the market,” said 2022 C.A.R. President Otto Catrina, a Bay Area real estate broker and REALTOR®. “With fewer active buyers in the market during the holidays, prospective buyers who may have taken a breather during the heated peak homebuying months can take advantage of this window of opportunity when there’s less competition and more homes to choose from.”