Analyzing the High Cost of California Housing: A Numerological Perspective

California’s real estate market is reaching new heights, with house hunters facing record-high monthly payments to buy a home. According to data from the California Association of Realtors, the median selling price in July was $832,340, making it the eighth highest on record. This, coupled with skyrocketing mortgage rates of 6.84% for 30-year home loans, has pushed the average monthly payment to $4,359 – up 17% from last year and a staggering 110% since February 2020.

With only 16% of California households able to afford a median-priced single-family home, sales have slowed to a 277,000-a-year pace, the 13th slowest on record. The lack of affordability has also led to a decrease in listings, with supply down 27% from last year and 68% below the 34-year average. As a result, the typical listing is on the market for just 16 days, indicating a sense of urgency among buyers with deep pockets.

The current situation begs the question – will prices remain unaffordable and sales slow, or will a shift in the market occur to make buying more accessible? With mortgage rates at a 21-year high of 7.09% on August 17, the future of California’s real estate market remains uncertain. Jonathan Lansner, business columnist for the Southern California News Group, can be reached at jlansner@scng.com for further insights on this evolving trend.