CALIFORNIA HOUSING MARKET OVERVIEW
The California housing market ended 2020 on a high note as sales remained strong in December and median house price reached another record high. The same momentum has been carried forward in 2021. In January 2021, the California housing market had its largest increase in sales and pricing in 17 years. C.A.R. reported a double-digit price and sales growth on a yearly basis in January.
According to C.A.R., the existing single-family home sales totaled 484,730 in January on a seasonally adjusted annualized rate, down 4.9 percent from December and up 22.5 percent from January 2020. The year-over-year, double-digit sales gain was the sixth consecutive and the third straight month that sales surged more than 20 percent from a year ago.
Tight supply and steady demand from home buyers boosted home values across California real estate market. January’s statewide median home price was $699,890, down 2.5 percent from December and up 21.7 percent from January 2020. It is reported to be the biggest gain in home values in California since February 2014.
These trends show us that the California housing market remains very competitive. Growth of sales are prices are driven by low mortgagee rates, buyers seeking more living space, and a perennial shortage of housng supply. Homes are selling quickly with a minimal price reduction.