California Home Prices Top $800,000 for First Time
We've got bad news for parents hoping - one day - to become empty nesters. California’s median home price rose to $813,980 in April, according to the California Association of Realtors. That's the first time that number has ever topped $800,000. Home prices have increased 7.2% since March and are up 34.2% from last year.
The housing market is on fire. And leading experts say it’s not sustainable.
“Not only do skyrocketing home prices threaten already-low homeownership levels and make it harder for those who don't already have a home to purchase one, it also brings to question the sustainability of this market cycle," said C.A.R. Vice President and chief economist Jordan Levine.
The primary driver of these sky-high prices is lack of supply. Of the 51 counties tracked by C.A.R., all but one saw a decline in active listings since last April. Experts hope that as vaccination rates increase and the public health situation continues to improve, more homeowners may feel comfortable putting their houses on the market. That hasn't happened yet.
Regionally, the San Francisco Bay Area saw the largest year-over-year increase in prices (101.4%). The Central Coast was next (81.7%), followed by Southern California (65.5%), the Central Valley (39.8%), and the Far North (38.8%).
San Mateo became the first county to surpass a median home price of $2 million in April. Santa Barbara County saw the largest growth at 83.3%. Tehama was next (66.4%), then Plumas (58.4%). Mariposa had the smallest price increase.
See all median home prices by county here.