On 17th May, the California Association of Realtors (C.A.R.) reported surpassing home prices in the region by over 800,000 dollars. For the first time in April, this victory has occurred with the latest statewide median price of $813,980. The value is high, with 7.2 percent from March and 34 percent from a year ago.
April standing and single-family house sales rose monthly by 2.6% from 446,410 homes in March. It also has broken the record by 65.1% from that of 277,440 homes sold a year earlier.
According to Dave Walsh, the V.P. and manager of the Compass San Jose branch, California tends to be among the hottest home markets in the country. The chief economist of C.A.R., Jordan Levine, states that the existing home prices challenge previous low homeownership rates and undermine the market's long-term viability. He mentions that higher property values would potentially tempt potential buyers who have been hesitant to market their homes for sale due to the pandemic. It will further relieve the pressure on the housing values as individuals feel more secure to list their homes as the vaccination rate is rising and the state has opened entirely.
The following are some of the other key parameters from C.A.R.'s April 2021 resale homes report:
- Including five of its nine counties rising by triple figures from a year before, the San Francisco Bay Area had the largest Y.O.Y. growth of 101.4%. The Central Coast is in the second position with 81.7%, led by 65.5% of Southern California, 39.8% of the Central Valley, and 38.8% of the Far North.
- The increment rate of the median price was more than 100% in six communities. Mono had the greatest year-over-year increase of 233.3%, accompanied by Marin (139.3%) and San Francisco (165.7%).
- Sales growth continued to intensify in higher-priced markets, while lower-priced home prices remained sluggish. The million-dollar sector saw a more than 200% rise in demand YoY, with sales of properties priced at $2 million and increasing beyond 300%. Sales of properties under $300,000, on the other side, continued to plunge in April, with the rate of increase falling by 34%. Housing availability continues to be the main stumbling block for sales in the lower price range.
- The average value in all 51 communities monitored by C.A.R. increased year over year, with 48 of them rising by upwards of 10%. In April, San Mateo County was the first one to break the $2 million barriers. Santa Barbara had the highest price increase of 83.3%, preceded by Plumas (58.4%) and Tehama (66.4%). A total of twenty-nine regions initiated a different record for the median price.
- The Unsold Inventory Index (U.I.I.) fell to 1.6 months in April from 1.7 months in March, significantly lower than a year earlier, when housing inventory stood at 3.4 months.
- For-sale properties boosted up by 7.4% MOM in April and thus should continue to rise in the coming months if the demand follows its usual seasonal trend.
- Most of the other 51 counties are monitored by C.A.R. saw decreased active listings from April of the prior year, with 34 of them falling by 50%. Yolo had the largest drop, with active listings down 71.4%, whereas Yuba was a close contender with a 71.3% drop. The only region in California that saw a rise in this from the previous year was San Francisco, with 22.7%.
- The statewide Sales-to-list-price ratio set down at 103.3% in the particular month.
- And, the statewide average price per square foot was a historic high at 383 dollars.
Headquartered in Los Angeles, C.A.R. is one of the biggest state trade associations in the nation, with over 200,000 members committed to the development of property investment excellence.