If you live in California and have been considering buying a home, you might be wondering if now is the right time to buy.
While life events can predict when you make a purchase, if your plan to buy is not time-sensitive, it can help to make sure you study the market so you know you’re buying at a time when real estate trends are in your favor.
Here is some helpful information about the California housing market and what you should know if you are looking at California homes for sale.
The California Housing Market Today: Trends You Need to Know
You may not have thought it possible, or you may be surprised because of the COVID-19 Pandemic, but the housing market is as tough as ever for buyers in California. As of April 2021, the median home price in the state is over $800,000 at $813,890.
This means that the average home price is up 7.2% in one month (since March 2020) and up more than 34% since the previous April (April 2020). April 2021 marked the third consecutive month that the number of home sales increased in California.
In March, 446,410 houses sold (up 65.1% from March 2020, when only 277,440 houses sold). Nearly every single county in California is experiencing an increase in home sales month over month.
In fact, 49 out of 51 counties in the state have recorded a year-over-year increase in home sales—with 31 counties experiencing an increase that is greater than 50%, year over year.
In Southern California in particular, housing inventories continue to rise as demand also increases.
And yet, despite the amount of inventory regularly available, prices continue to grow—and it continues to be a seller’s market, with buyers in bidding wars or losing out on dream homes because of higher, all-cash offers.
In Orange County, the median price of a home is currently $835,000, which is 10.6% higher than the previous year. In Los Angeles County, the median price is $750,000, reflecting a 17% increase from 2020.
In Northern California, the market remains strong. In fact, in Q1 of 2021, experts at MarketWatch predicted that the Northern California housing market would be the strongest in the country.
While most people expect the housing market in the Bay area to be thriving and competitive, the hottest market in Northern California is actually expected to be in capital city Sacramento, which has become a distant but possible option as a bedroom community for people who work in tech in San Francisco, San Jose, and Silicon Valley.
People are choosing Sacramento despite the commute because the housing cost is lower.
Learn More About the Thriving California Housing Market Before You Buy
There’s no doubt it’s currently a seller’s market when it comes to Northern California real estate. If you want to buy somewhere affordable in California, it may make sense to wait until the market is less competitive.
If you want to learn more about the California housing market, reach out to us today. We can talk to you about your real estate needs, then discuss whether now is the best time for you to acquire a new home.
We can also help guide you through your process of looking at California homes for sale, so we can ensure that you end up living where you want and that your purchase fits your needs and budget.
