Median Home Price Sets New Record in California

[Zorro]

Source: New York Times

The pandemic paused the housing market for a few months, but it has been on a rebound that has pushed the median price over $700,000.

Fueled by low interest rates and a historic housing shortage, California’s median home price in September reached $712,430, closing out four straight months of record highs.

The state’s housing market briefly cooled in the early months in the coronavirus pandemic, but by June, they were fully on the rebound, with the median sales price reaching $626,200, the highest ever at the time, according to a report from the California Department of Finance. For the next three months, as mortgage rates stayed below 3 percent and many buyers looked to upgrade to larger homes, that number would continue to climb. In August, it exceeded $700,000 for the first time in history.

“A lot of people think the pandemic equals the market is suffering, but that’s just not the case,” said Ryan Lundquist, an appraiser based in Sacramento. “It’s the perfect storm of low rates, a housing shortage that we already had and is getting worse, plus heightened demand.”

There has been much talk of the exodus triggered by California’s inflated cost of living, which has seen Californians trickle outward to states with a lower cost of living — states like Texas, Nevada, and Arizona — for more than a decade. But while the state did lose 650,000 residents last year, “We have 39 million people here,” Mr. Lundquist said. “It’s a drop in the bucket compared to how many people are here, and builders haven’t been able to build fast enough to satisfy our population.”

Read more: https://www.nytimes.com/2020/11/30/realestate/california-housing-market-price.html

[obnoxiousdrunk]

2. Welcome to DU !

[not fooled]

3. I have a feeling

their stay will be short.

[C Moon]

4. What's SAD is that the dumb fat ass sitting in our White House didn't give a damn about

lives lost to COVID, jobs lost to COVID, rents not paid because of COVID.

[SunSeeker]

5. I don't know how any middle class person can afford to buy a house now in CA.

Unless you're willing to live in a depressed rural community, every decent house in CA requires a 6-figure income.

Too many people chasing too few houses. It's all about supply and demand, not anything to do with inflation or taxes. That is why people are leaving CA; they're looking for a place where they can buy a house.

In many ways, CA is a victim of its own success. Everyone wants to live here, especially the LA/SF areas. But there are just not enough houses for everyone, so the rich win the bidding war.

My house bought a house back in the 1990, during a downturn in the real

[CountAllVotes]

6. My small house in northern Callif. is worth abt $275,000

It seems like a low price compared to some of the homes I see being sold for $350-$500,000.00.

This is an estimate being I've lived in said house for almost 20 years now and have no intention of moving.

Its a small house and serves its purpose.

[JI7]

7. I think a lot of people who were planning to buy in the future

have decided to do it earlier than planned.

[JI7]

8. And a lot of those homes are shit that needs work done

[honest.abe]

9. There is a disconnect between what is happening in the overall economy and housing costs.

Its a bit difficult to understand. I suppose the lack of inventory is the main reason. Most people are deciding to stay put until this crisis is over but there are still people who have to move due to jobs or other reasons so they drive the prices up.

[Evolve Dammit]

10. My first house with 2 1/2 acres was 45,000 in 1984. That's a car now. Crazy prices.