CALIFORNIA – The California Association of Realtors (CAR) published a report, May 17, showing the statewide median home price exceeded $900,000 for the first time ever, setting a new record-high.
“April’s statewide median home price was $904,210, up 5.8% from March and up 11.4% from $811,510 in April 2023,” said the news release.
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The report says closed escrow sales of existing, single-family detached homes in California totaled 275,540 in April.
Adjusting to higher interest rates
CAR President Melanie Barker said April’s rebound in both home sales and price is a signal that buyers and sellers are beginning to adjust to the higher interest rate environment.
“Market fundamentals are showing signs of improvement, and competition is on the rise again; homes are selling faster and nearly half the share of homes is selling above asking price ― the highest in nine months,” said Barker.
The report says the median number of days it took to sell a single-family home was 16 days in April.
$1 million dollar homes in California continue to hold up better
CAR says sales of homes priced at or above $1 million dollars in California continue to hold up better than their more affordable counterparts in the state in the last few months.
“Sales in the $1 million-and-higher market segment surged 39.8 year-over-year in April, while the sub-$500,000 segment declined again moderately (-8.0%),” said the news release.
Sticky inflation
CAR Senior Vice President and Chief Economist Jordan Levine said while the market performed solidly in April, they don’t expect to see a rapid recovery as long as inflation remains sticky and mortgage rates continue to fluctuate despite recent dips.
“However, housing inventory has also 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.”
The 30-year, fixed-mortgage interest rate averaged 6.99% in April, up from 6.34% in April 2023, according to CAR’s calculations based on Freddie Mac’s weekly mortgage survey data.
To read the full report visit https://www.prnewswire.com/news-releases/spring-homebuying-season-kicks-off-with-encouraging-start-california-median-home-price-sets-new-all-time-high-car-reports-302148488.html
RELATED: Report says CA housing affordability improved – $208,400 income needed for median home price
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