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California Housing Recovery Continues, Median Home Price Sets Another Record High
California’s housing market continued to recover as home sales climbed to their highest level in more than two and a half years in July, while setting another record-high median home price, the California Association of Realtors (C.A.R.) reported on Monday. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 437,890 units in July.
C.A.R. President Jeanne Radsick says, “A housing market trifecta of strong pent-up demand, record-low interest rates and a renewed interest in the value of homeownership bolstered July’s home sales. With this year’s delayed start of the homebuying season due to the pandemic, we expect home sales to remain robust in August and September, extending the season later than what’s typical.”
July’s sales total climbed above the 400,000 level for the first time since February 2020, before the COVID-19 crisis depressed the housing market, and was the highest level in more than two and a half years. July sales rose 28.8% from 339,910 in June and were up 6.4% from a year ago, when 411,630 homes were sold on an annualized basis. July marked the first time in five months that home sales posted an annual gain.
The statewide median price hit a new high after just setting a record in June. California’s median home price reached $666,320 in July, jumping 6.4% from June’s $626,170 and 9.6% from $607,990 in July 2019. The monthly price increase was higher than the historical average price change from June to July and, in fact, was the highest ever recorded for a June-to-July change.
A change in the mix of sales was one primary factor that pushed the median price higher in July, as sales of higher-priced properties continued to outpace sales of lower-priced homes, notes C.A.R.
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