For the first time, California median house price surpasses $900,000
If you're buying a house in California, chances are it'll cost you over $900,000.
What exactly is the median home price anyway? Well, it's the price point where half the homes sell for more, and half for less. So in this example, there's a 50% chance that a house will cost you more (or less) than $900,000.
This past Spring the statewide median reached $904,210 marking a record high, an increase of 11.4% from the same time period in the previous year according to data from CAR (California Association of Realtors). This is an increase of over $100,000 in the last two years alone.
What's to blame for this?
High rates and high prices have created mind-bending scenarios for many would-be buyers and economists point to rising prices mainly because many owners are refusing to sell and give up their 3% (or less) rates, which is creating a huge shortage of available housing inventory.
If housing prices continue to rise at 11% per year, the California median will exceed $1,000,000 by 2025.
Experts believe this may not happen though. Recently, more homes have come onto the market due to slight rate decreases and Los Angeles, Ventura, San Bernadino and Riverside counties have all reported a 5%+ increase in listings or over the same period a year ago, while San Diego County reported a 18% increase over the last year.
While the market is tough right now for buyers - I'm hopeful that Fall 2024 will bring another rate reduction and will provide a little bit of relief on the market!
Source: AOL
