The fee to purchase a house in California simply shattered state’s earlier all-time, record-high
The cost to buy a home in California has reached a new all-time high.
The statewide median price for a single-family home rose to $904,210 in April, exceeding the $900,000 benchmark for the first time in California history, according to the California Association of Realtors‘ newly released April Home Sales and Price Report.
The new record represents an 11.4% increase from April 2023, when the median home price was $811,510.
The San Francisco Bay Area and Southern California recorded the biggest year-over-year median price jumps in the state, with the Bay Area seeing a 15.5% increase ($1.3M to $1.4M) and Southern California seeing home prices rise 12.1% ($850,000 to $880,000). These were the only two regions in the state to post a double-digit price gain.
“Competition is on the rise again,” Melanie Barker, president of the California Association of Realtors, said. “Homes are selling faster, and nearly half the share of homes is selling above asking price – the highest in nine months.”
Santa Clara and San Mateo counties
Santa Clara and San Mateo counties each saw their median home prices hit the $2-million mark this year.
In Santa Clara County, the April median home price reached $2 million, a 4.7% increase from $1.9 million in March, and an 11.1% jump from the median price of $1.8 million in April 2023.
In San Mateo County, the median home price was $2.15 million, a 9.1% increase from $1.97 million in April 2023. Compared to the previous month of March, however, the median price dipped 0.9% from $2.17 million.
Both counties saw increased sales activity. Santa Clara County home sales rose 24.8% from March, and were up by 40.8% from the prior year. San Mateo County home sales increased 28.1% from March, and were 51.8% higher than in April 2023.
“Our markets are really doing well as buyers come to terms with higher interest rates, but we need more homes,” Eileen Giorgi, president of the Silicon Valley Association of Realtors, said. “Home prices are spiraling due to the lack of inventory in our markets. Although we’re seeing new listings coming onto the market, they haven’t made a dent on our inventory. First-time homebuyers cannot compete with buyers offering 10% to 20% above the listing price.”
According to the California Association of Realtors’ Housing Affordability Report released on May 9, only 17% of homebuyers in San Mateo County and only 18% in Santa Clara County could afford a median-priced home during the first quarter of this year.
What to expect in coming months
Seasonal factors and tight housing supply will continue to place upward pressure on home prices in the coming months, Jordan Levine, chief economist for the California Association of Realtors, said. While the market performed solidly in April, Levine does not expect to see a rapid recovery as long as inflation remains sticky and mortgage rates continue to fluctuate.
He noted, however, more homes are coming onto the market.
“Housing inventory also has started to increase, which will provide much-needed supply to the market and facilitate a higher level of home sales in the second half of the year,” Levine said.
Silicon Valley Association of Realtors (SILVAR) is a professional trade organization representing 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term Realtor is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics.
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