The California real estate market is on an upswing. Despite concerns about affordability, demand for homes remains high, and prices continued to rise.
According to data from the California Association of Realtors, the statewide median home price in January 2020 was $575,160, up 7.3% from January 2019. Sales of existing single-family homes also increased by 10.3% compared to the previous year, with a total of 395,550 homes sold statewide.
Low inventory levels continued to be a challenge for buyers, as there are fewer homes on the market than in previous years. The number of active listings in January 2020 was down 31.2% from January 2019, with only 2.6 months of inventory available statewide.
However, the market showed signs of cooling in some areas. In San Francisco, for example, the median home price in January 2020 was down 3.8% from the previous year, with a median price of $1.6 million. The number of homes sold in the city also decreased by 2.8% compared to the previous year.
Experts attributed the slowdown in some markets to a combination of factors, including rising prices, economic uncertainty, and geopolitical tensions. Additionally, some buyers may be holding off on purchasing homes in anticipation of the 2020 presidential election.
Despite these challenges, the overall outlook for the California real estate market is positive. Low-interest rates, a strong job market, and high demand for homes were expected to continue to drive the market forward in the coming months.