California home sales fall 6.5% amid rising mortgage rates

Existing single-family home sales in California fell 6.5% year-over-year in September, according to a report from the California Association of Realtors. The seasonally adjusted annualized sales pace reached 260,410, a 3.4% decrease from August.

Rising mortgage rates and affordability constraints are cited as primary drivers for the decline in demand. The average 30-year fixed mortgage rate in September was 6.86%, up from 6.67% in August and 6.35% a year earlier. While statewide median prices rose 1.7% annually to $899,720, the median price saw a slight monthly dip from August.

Regional data shows Southern California experienced the largest annual decline at 9.1%. In Riverside County, sales dropped 12.7% compared to the previous year and 6.4% from the previous month. The Inland Empire also saw a year-over-year decrease of 10.2%. The Central Coast was the only major region to report an increase in sales, rising 4.4%.

California Association of Realtors President Tamara Suminski noted that as competition eases, buyers may have more room to negotiate, though affordability remains a significant challenge.