CALIFORNIA'S HOUSING MARKET HAS REACHED A BOILING POINT, AND A TYPICAL HOME COSTS $600,000
Source: Business Insider
For the first time in history, California's median home price hit $600,860, according to the California Association of Realtors (CAR). The record was based on home sale prices in May and was up 2.8 percent from April and 9.2 percent from May 2017.
California's median-priced home — where half of the homes sold below that number and half sold above— is more than double the national median home price of $264,800.
California's median price previously peaked at $594,530 over a decade ago, according to CAR.
"As we predicted last month, California's statewide median home price broke the previous pre-recession peak set in May 2007 and hit another high as tight supply conditions continued to pour fuel on the price appreciation fire," CAR Senior Vice President and Chief Economist Leslie Appleton-Young said in a press release.
The upward pressure on prices is caused by a major shortage of housing supply in the state, particularly in the bottom end of the market where homes are priced below $200,000. In the last year, availability of those homes declined by nearly 29 percent, while the supply of homes on the market priced at $1 million and up increased by more than 18 percent.
Still, buyer demand is in high gear. The median time it took to sell a single-family home in California in May was 15 days.
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