As noted by California Realtors (CAR) Association, for the first time in the history of California home prices reached 600,860 USD. The report is based on house sales prices in May, up 2.8% from April and 9.2% higher than the same period last year.
California home prices have just marked a record increase last month
California’s current average home prices have doubled compared to the nation ($ 264,800). According to the assessment, the highest recorded house price in California was 594,530 USD in the past decade.
Senior vice president and chief economist Leslie Appleton-Young said in a press release, “California’s house price broke the record in the post-crisis 2007 period as we expected in April. “.
According to many reviews, the increase in the average house price is due to the shortage of housing supply, especially the average housing segment with the price of under 200,000 USD. In the past year, supply of this segment has decreased by nearly 29%. Meanwhile, the supply of high-end segments with more than $ 1 million increased by more than 18%.
The demand of buyers in California state is also high. The average time to sell a family home in California in May was 15 days.
The Bay Area is said to have the highest house price with an average price increase of 16.4% from May 2017 to May this year.
Alameda, San Francisco, San Mateo, Marin and Santa Clara counties are five of the nine counties with an average price from $ 1 million to $ 1.62 million.