$2M will not get you a median-priced residence in San Mateo or Santa Clara counties anymore
Key takeaways from May Home Sales & Price report
- All major regions in the state experienced an increase in their median price from a year ago. The San Francisco Bay Area posted the biggest price jump on a year-over-year basis, increasing 11.9% from last May.
- San Mateo County‘s median home price increased 15.7% (from $2.07 million to $2.4 million) compared to the same time last year.
- Santa Clara County‘s median home price increased 17.4% (from $1.78 million to $2.1 million) compared to the same time last year.
- At the county level, the number of for-sale properties increased in May from a year ago in all but three of the state’s counties. San Francisco was among those that saw a decline (2.9%).
- The median number of days it took to sell a California single-family home was 16 days compared to 17 days in May 2023.
- Home sales in all major regions of the state continued to soften compared to last year, except the San Francisco Bay Area, which saw a 4.3% increase in sales and the Central Coast, which saw sales increase 0.6%.
The median price for homes in San Mateo and Santa Clara counties just shattered previous records, surpassing the $2-million mark in both markets for the second consecutive month.
The median home price in San Mateo County is now $2.4 million, up from $2.15 million in April. In Santa Clara County, it’s $2.1 million compared to $2 million from the previous month, according to a new housing report from the California Association of Realtors.
The two counties are the only ones in the state where the median home price has surpassed the $2-million mark. Marin, with a median price of $1.8 million, comes in third as the most-expensive county to buy a home in the state, followed by San Francisco at $1.69 million, the report shows.
What buyers can get at the new median prices
So what does a median-priced home of $2.4 million get you in San Mateo County? In Menlo Park, a property recently listed with an asking price of $2.48 million would get you a 1945-era 2,550-square-foot single-story rancher with four bedrooms and three baths on a 8,728-square-foot lot, according to the listing on Zillow.
In Santa Clara County, a home recently listed in Palo Alto with an asking price of $2.05 million would get you a 1,020-square-foot 1923-era Spanish bungalow with one-bedroom and one-bath on a 6,970-square-foot lot in the heart of downtown, according to the listing on Zillow.
In Marin County, a median-priced home could get you a 2,975-square-foot, two-story Tudor-style house built in 1975 with 4 bedrooms and 3 baths on a .42-acre lot in Novato, according to the listing on Zillow.
How the Bay Area compares to the rest of the state
All of California’s major regions (San Francisco Bay Area, Central Coast, Central Valley, Southern California, Far North) experienced an increase in their median price from a year ago. The San Francisco Bay Area posted the biggest price jump on a year-over-year basis, increasing 11.9% from last May. Along with Southern California (10%), they were the only two regions recording a double-digit gain from a year ago, the report states.
Statewide, California’s median home price increased for the 11th straight month in a row, setting another record-high at $908,040 in May, according to the report.
This is the second consecutive month that the statewide median price has exceeded the $900,000 benchmark. In April, the statewide median price was $904,210, according to the report.
Why median prices are surging
A persistent shortage of homes for sale, particularly in the more affordable markets, is largely responsible for the surge in home prices, the report indicates.
“Stronger sales of higher-priced properties have continued to contribute to the median price growth, especially since million-dollar home sales in California have been rising more rapidly than their more affordable counterparts in the state,” the report states.
Sales in the $1-million-plus market rose 15.5% compared to May 2023, while sales in the sub-$500,000 segment declined by 12.2%. Sales of homes priced above $1 million now make up 36.6% of all sales ― the biggest share in at least the last five years, the report states.
“With mortgage rates coming back down from their recent peaks and market competition heating up, the statewide median price may have more room to grow before the summer ends,” Jordan Levine, senior vice president and chief economist for the California Association of Realtors, said.