California’s median home price just broke a record.
The coronavirus recession isn’t cooling California’s real estate market.
The median home price in California for the first time exceeds $700,000, according to a report released Tuesday by the state Department of Finance.
The report stated that in August, the median price for a single-family home reached $706,900, “surpassing the previous record set in July 2020 by 6.1%.”
“This is up 21.9% from February 2020 and up 14.6% from August 2019,” according to the department report.
The volume of home sales climbed statewide by 6.3% to more than 465,000 units, the highest sales volume since May 2010, according to the report.
Home sales briefly dipped in the early months of the coronavirus outbreak, but they’ve edged up in recent months as buyers sought to move to larger homes and take advantage of historically low interest rates.
“We’ve seen a market that increased in momentum, it’s going faster, it’s as if the gas pedal was pushed on. And what’s the gas pedal, well, low inventory and mortgage interest rates below 3%,” Sacramento appraiser Ryan Lundquist said Tuesday on his website, Sacramentoappraisalblog.com.
The trends could change. California’s unemployment rate in August stood at 11.4%, leaving 2.1 million residents out of work. Gov. Gavin Newsom earlier this month signed a law intended to provide eviction protections for renters during the pandemic, but it did provides less help for homeowners facing foreclosure. It direct banks to explain any decisions they make denying mortgage relief to homeowners affected by the pandemic.
Source: C.A.R., REALTOR® Magazine, HousingWire, CNBC, The Wall Street Journal, Redfin