Home prices hit record high
The median home price in California rose to more than $900,000 for the first time ever in April, setting a record for the state, according to recent data from the California Association of Realtors.
That average has risen 11.4% since April 2023, jumping to $904,210. This is despite an overall poor perception of the economy and mortgage rates hovering around 7% — though that’s slightly down from October 2023, when they reached a 23-year high of nearly 8%.
Housing inventory is still constrained throughout the state as the real estate market goes into its busy season. Home prices have inched up nearly 6% since March 2024, and sales of homes priced at more than $1 million across the state have skyrocketed — up nearly 40% since April
2023 — helping bolster the overall statewide median home price.
Additionally, parts of the state that were once deemed “affordable” are now much more expensive, said Jordan G. Levine, chief economist at the California Association of Realtors.
Despite speculations of a San Francisco Bay Area exodus and a sluggish housing market, the region saw the biggest price increase year over year, up 15.5% since April 2023. Every other region in the state also saw prices go up, with the exception of the
Far North region, which saw a 5.2% decrease.
Prices continue to inch up in popular metro areas, but they’re rising in more surprising places, too. Housing prices in California in 2023 grew the fastest in Tustin, according to data provided to SFGATE earlier this year by real estate company Redfin. Prices were up 11.7% year over year in the Orange County town south of Anaheim, with a median home price of $1 million. The secondmost dramatic price growth of the year was in the small city of Coachella, the easternmost city in the Coachella Valley that shares its name with the yearly music festival, even though it’s not hosted there. Coachella saw an 11.5% increase in home prices.
Meanwhile, home affordability in California is at its lowest level in 16 years, according to a 2023 report from the California Association of Realtors. At the time the report was released, residents needed an annual income of at least $222,800 to afford a median-priced home in the state, equating to just 15% of home buyers being able to purchase the average house.
“There’s kind of a tale of two economies happening where folks at the top end of the income spectrum are still punching above their weight,” Levine said. “... But if you’re already right at the affordable level, there’s not a next tier down to shop in at all.”