California’s Median Home Price Posts Highest Level in Nearly Five Years

Strong sales in higher-cost coastal regions and heated market conditions drove California’s median home price to its highest level in March since May 2008, while inventory shortages continued to stifle home sales, C.A.R. reported this week.

“While home sales were essentially flat from February, sales declined moderately from last year, as an extreme shortage of available homes continued to dictate the market,” said C.A.R. President Don Faught.  “Statewide inventory dropped 36 percent from last March and was below 3 months for the second time in the past few months.  Supply conditions are particularly tight in the lower-priced segment of the market, as inventory for homes priced below $300k plunged more than 50 percent from the previous year.”

March home-sale closings were up a slight 0.1 percent in March from a revised 417,310 in February but down 4.9 percent from a revised 439,260 in March 2012.  The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the March pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home climbed 13.7 percent from February’s $333,380 median price to $378,960 in March, reversing a two-month decline.  The month-to-month increase was the highest since C.A.R. began tracking this statistic in 1979.  The March price was up 28.2 percent from a revised $295,630 recorded in March 2012, marking the 13th consecutive month of annual price increases and the ninth consecutive month of double-digit annual gains. 

Carylee Stone

Distinctive Properties

858-344-2632

carylee@stonehometeam.com