California Housing Market Update
July 5th, 2022The California housing market is showing no signs of slowing down. Prices continue to rise while sales decline.
San Diego Housing Market Update
San Diego home prices continue to rise, with the median price reaching $917,000 in May 2022.
This marks an increase of 20.6% compared to last year in San Diego and demonstrates the strong demand for housing in the area.
On average, homes in San Diego sell after just 10 days on the market. This is a slight decrease from last year when homes were selling after an average of 9 days.
Despite the decrease in the number of San Diego homes sold this year (1,301 homes in May 2021 compared to 1,544 last year), prices are still rising steadily. This is good news for sellers but may make it increasingly difficult for buyers to find affordable housing in the San Diego area.
The Housing Market is Shifting
The California housing market is cooling, but it’s still hot enough to set new records.
California home prices shot up 4% in just one month and are now at an all-time high again—$884 thousand.
Sales have slowed considerably this year compared with last year’s levels -1 9%. And finally, interest rates may be rising, which could deter further buying activity as people await mortgage applications or approved loans before indexes go even higher.
The California housing market is on a heating-up cycle, with home prices reaching new heights again this month.
Despite positive trends we’re seeing throughout much of The Golden State, there is still concern that something may go wrong before it gets better – namely, rising equity levels among homeowners who have seen little growth or decline since 2012 when they had record-high earnings.
The average house price sold in California reached another all-time peak at $898,980.Home prices in California are skyrocketing with no sign of slowing down.
According to the California Association of Realtors, homes are still flying off the shelves in record time.
The median number of days required to sell a single-family home in California was 9 days in May, two days less than May 2021. This is due in part to the state’s strong economy and historically low-interest rates. However, it is also a result of the limited supply of homes on the market.
In May 2021, there were only 2.2 months of inventory available, compared to the 3.0 months needed for a balanced market. As a result, buyers are willing to pay top dollar for properties that are available, leading to increased prices and quick sales.
Will California Home Prices Drop?
Homeowners are constantly asking if and when home prices will drop.
Mortgage rates have doubled, which pushes up mortgage payments; it’s hurting homeowners crucified with other record-high costs like gas prices on top of their already tight budgets.
The economic situation looks bleak due to inflation – what does all this mean? It means an even greater struggle for those living within California’s borders.
The housing market in California continues to become increasingly tight as the supply of affordable homes shrinks and demand remains high.
Million Dollar Homes Lead the California Housing Market
Million-dollar home sales accounted for 34% of all transactions last April, up from previous years but still below levels before the Great Recession. The share of these high-priced properties is growing and represents nearly one out of every two houses sold!
Low-cost houses have been selling fast, so it isn’t surprising that consumers will now look at more expensive options.
The housing market is still booming, and even though prices are increasing, it might be good news for buyers.
More Housing Inventory in California
A recent report from California Realtors suggests that they see an increase in new listings. However, supply remains an essential factor as prices and mortgage payments soar. California Realtors reported increased activity up to the week ending June 25th, which may mean that buyers will have more options in search of homes this summer season.
Leave a Reply