After a record-breaking year, single-family home prices continue to surge throughout the state of California, according to the California Association of Realtors.
As the spring real estate season approaches, California’s median single-family home price has continued to increase throughout the winter months. in recent months to $771,270, a 0.7% increase from January 2022, and a 10.3% increase year-over-year, as reported by C.A.R..
Some areas saw even higher pricing increases, like San Francisco, with an almost 16% increase in median home prices, as outlined in the report. However, the areas that saw the biggest price increases generally also experienced less sales volume.
“The higher-than-expected growth in the statewide median price is partially due to a shift in the balance of sales toward million-dollar homes, as sales increased in more expensive locations such as the Central Coast and the San Francisco Bay Area.”, summarizes Norada Real Estate Investments summarizes in their California Housing Market: Prices, Trends, Forecast for 2022.
While California continues to be a seller’s market, largely due to low inventory levels, Nearly 65% of homes sold above the asking price in February 2022, reports C.A.R., however, home sales have slowed across the state decreasing 8.3% to $424,640 year-over-year.
The majority of home sales have been led by millennial buyers as highlighted in the National Association of REALTORS’s Home Buyers and Sellers Generational Trends report for 2022.
What does this mean for luxury real estate?
Vice President and Chief Economist of C.A.R., Jordan Levine explains, “While home sales declined from both the previous month and year, February’s sales pace was still the second highest sales level for a February in the last 10 years and strong relative to pre-pandemic levels of 2018 and 2019… However, the invasion of Ukraine has created geopolitical headwinds and pushed up inflation up a notch, which may keep mortgage rates elevated and cause the housing market to retreat amid the uncertainty.”
February home sales and price report – California Association of Realtors
Market Minute – California Association of Realtors
California Housing Market: Prices, Trends, Forecasts 2022 – Norada Real Estate Investments