The Highest Home Prices in California History: How & Why?!

Inventory shortages drove the median home sale price in California past the $800k level for the first time ever, according to the latest report from the California Association of Realtors

Prices rose 7.2% month over month and 34.2% year over year. This is the highest yearly rate of growth ever recorded in the state; the last time prices breached 30% growth was in June 2013. 

Months of supply dropped to 1.6 months from 3.4 months last year, signalling an extremely tight market. 

Analysts believe that the pandemic has continued to keep lower priced inventory from coming to market, and it will take more time before this trend returns to normal. 

The Bay Area region has the lowest months of inventory of any CA region at 1.3 months, down from 2.9 months same time last year. 

You literally have to go through hell to find a buyers market in CA - Bumpass Hell that is, in Lassen, the only major county in California with >5 months of inventory.  


Source: California Association of Realtors

READ NEXT: Which California City Has the Hottest Real Estate Market This Week?

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