California Home Prices Reach Record Highs: What to Expect Next

The housing market in California is reaching new heights as the median price for a single-family home has surpassed $900,000 for the first time in history. According to the California Association of Realtors, the statewide median price rose to $904,210 in April, representing an 11.4% increase from the previous year.

The San Francisco Bay Area and Southern California saw the biggest jumps in median home prices, with the Bay Area hitting $1.4 million and Southern California reaching $880,000. However, Santa Clara and San Mateo counties took the lead with their median home prices hitting the $2 million mark.

In Santa Clara County, the median home price reached $2 million, while in San Mateo County, it was $2.15 million. Both counties saw increased sales activity, but the lack of inventory is driving prices even higher. Only 17% of homebuyers in San Mateo County and 18% in Santa Clara County could afford a median-priced home in the first quarter of this year.

Despite the high prices, more homes are coming onto the market, which is expected to provide some relief in the coming months. Seasonal factors and tight housing supply will continue to push prices up, but experts are hopeful for a higher level of home sales in the second half of the year.

The Silicon Valley Association of Realtors is working to promote ethical standards in real estate practice and advocate for homeownership in the region. With the housing market showing no signs of slowing down, it’s clear that buyers will need to navigate a competitive market with rising prices.