What’s Going On With Real Estate in California?
The California housing market has been breaking records while experiencing rapid growth. This market accounted for more than a fifth of the national total last year.
Even though interest rates are expected to go up, so will the value of real estate in California. Keep reading to find out what is going on with the real estate market and what to expect.
Prices Continue to Rise
The median home price in California is almost $800,000. Many buyers are offering sales bids much over the asking price to try and get their offers accepted. These bidding wars lead to highly inflated sales prices.
This has a huge impact on affordability. Only 25% of California households could afford to purchase a home at the median price in 2021.
Most Expensive Real Estate in California
Areas like the San Francisco Bay Area have some of the most expensive California homes on the housing market. The median price of homes here is over one million dollars.
Other high-priced areas are the Central Valley, Central Coast, Los Angeles Metro Area, and the Inland Empire.
Many people are looking to sell at these high prices right away. You can do that by using SellersAdvantage to get fast cash for your house as-is.
Homes Are Selling Super Fast
There is a supply and demand imbalance that makes the buyer’s market extremely competitive. Homes are selling exceptionally quickly.
The median number of days to sell a single-family home in California has been as low as 9 to 10 days. California real estate agents are selling houses faster than ever trying to keep up. New construction homes can’t keep up with the demand either, so there remains a shortage of homes for sale.
What’s on the Horizon?
With interest rates slated to rise you may expect to see some slowing in the prices of homes in California. But trends show that the housing market will likely remain very competitive.
As higher prices cause more homes to hit the real estate market the rate of growth should be expected to slow down to a minimal level. But the reality is that there just aren’t enough homes to meet the demand of the buyers in the state.
California Association of Realtors Projections
The California Association of Realtors expects the number of single-family home sales to go down by about 5% from 2021, and for the median home price to rise by about 5%.
Housing affordability is expected to drop from 25 to 23%, meaning they think there will be even f homes for sale at even more expensive prices. However, they note that other factors like the fall of unemployment rates, the rise of r workers, and higher interest rates will hopefully slow the rise of prices.
Sell in a Hot Market
It is a great time to be a seller. If you have been considering listing your real estate in California, do it while the market is hot and bids are over-ask.
Check out the other articles on our blog for more information about real estate trends and finance tips.