Real estate agents arrive at a broker’s tour showing a home for sale in San Rafael, California. (Photo by Justin Sullivan/Getty Images)
Home prices in California hit a new record high in April as sales increased despite the state’s seemingly insurmountable housing shortage.
The median price of a single-family home jumped to $904,210 last month, nearly 6% higher than in March and 11% above April 2023, according to data released Friday by the California Association of Realtors.
Home sales also increased month-over-month and year-over-year in the low single digits.
“Sales and prices are rising despite all the speed bumps we’ve encountered along the way with the Federal Reserve and rising rates, which hurt purchasing power,” said Jordan Levine, chief economist at the association.
The average 30-year fixed-rate mortgage rate as of Friday was 7.02%, about three-quarters lower than in October 2023, but still significantly above historic lows of 2-3% seen during the COVID-19 pandemic.
| Region/County | April 2024 | March 2024 | April 2023 | % price change from month to month | Year-on-year price change % |
| Statewide | $904,210 | $854,490 | $811,510 | 5.8% | 11.4% |
| Condo/Townhouses | $688,000 | $675,000 | $634,000 | 1.9% | 8.5% |
| Los Angeles Metropolitan Area | $840,000 | $801,000 | $740,000 | 4.9% | 13.5% |
| Central Coast | $1,077,500 | $950,000 | $1,020,000 | 13.4% | 5.6% |
| Central Valley | $493,500 | $478,600 | $463,000 | 3.1% | 6.6% |
| Far north | $364,900 | $374,950 | $385,000 | -2.7% | -5.2% |
| Inner Empire | $607,000 | $594,250 | $565,000 | 2.1% | 7.4% |
| SF Bay Area | $1,444,000 | $1,386,500 | $1,250,000 | 4.1% | 15.5% |
| Southern California | $880,000 | $850,000 | $785,000 | 3.5% | 12.1% |
“The supply problem is probably worse right now because many people are forced into these low rates. So even though rates drop a little bit from the mid 7s to the high 6s, you see demand start to pick up, which drives prices up,” Levine said.
According to CAR, the median home price in the Los Angeles metro area reached $840,000 in April, also a record.
California’s Central Coast ($1,077,500), Central Valley ($493,500) and Inland Empire ($607,500) also reached new highs.
California’s affordability crisis is well-documented, and experts point to high housing costs as one of the biggest contributing factors. This makes owning a home in the Golden State, especially in larger metropolitan areas, a good investment. However, Levine says the barrier to entry is getting higher and higher due to the housing shortage.
“Wherever you go in the state, we’re not building enough. Some areas are a little more favorable to new development. But overall, we’ve seen incredible growth in employment and population over the last 20 to 25 years… We have a lot of housing to build, no matter where we’re talking.
News Source : ktla.com
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