The struggles around short inventory have driven California home prices to record levels, according to new data from the California Association of Realtors.
The statewide median home price in March was $758,990, up 8.6 percent from February and up 23.9 percent from March 2020. When it comes to sales themselves, year-to-date statewide home sales were up 17.1 percent in March., but were actually down slightly compared to February 2021. Existing, single-family home sales totaled 446,410 in March on a seasonally adjusted annualized rate, down 3.5 percent from the month prior.
“While intense homebuying interest is the engine that continues to drive housing demand, a shortage of homes for sales is the rocket fuel pushing prices higher across the state. A lack of homes for sale is creating unprecedented market competition, leading to a record share of homes selling above asking price in March,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “With more of the state’s COVID-19 restrictions being lifted in the coming months as we move into the spring home buying season, we should see home sales improve as more prospective home sellers feel comfortable listing their homes for sale.”
The median home price in California in February 2021 was $699,000, while March 2020 saw median prices at $612,440. The year-over-year gain was the highest since October 2013 and it was the eighth straight month that California’s median price registered a double-digit gain.