Home prices in California soared to a new record high in April despite mortgage rates remaining elevated, according to a report.
The median price of a single-family home in California rose to $904,210 in April. That marks a nearly 6% increase in home prices from March and an 11% rise from April 2023, per recent data from the California Association of Realtors.
The rise in rates comes despite mortgage rates hovering around 7% and a poor perception of the U.S. economy.
In addition to single-family homes, the median price of condominium units and townhouses also increased to $688,000 in April. That is up from $675,000 in March and $634,000 in April 2023.
Apart from home prices, sales across California also increased month over month and year over year by single digits.
"Both sales and prices are going up despite all the speed bumps that we've had along the way with the Federal Reserve and rates going up, which is hurting purchasing power," Jordan Levine, the association's chief economist, said.
How Much Home Prices Increased by Area
The median price of homes inched up across popular metro areas in the state. The San Francisco Bay Area saw the biggest price increase year over year, up 15.5% since April 2023. Home prices in the state are now at $1,444,000 from last year's $1,250,000.
Here's a look at the regions that saw home prices increase.
|
Region/County |
April 2024 |
April 2023 |
Year-over-year price change |
|
Central Coast |
$1,077,500 |
$1,020,000 |
5.6% |
|
Central Valley |
$493,500 |
$463,000 |
6.6% |
|
Inland Empire |
$607,000 |
$565,000 |
7.4% |
|
Los Angeles Metropolitan Area |
$840,000 |
$740,000 |
13.5% |
|
S.F. Bay Area |
$1,444,000 |
$1,250,000 |
15.5% |
|
Southern California |
$880,000 |
$785,000 |
12.1% |
All regions in California saw home prices go up except the Far North region, where prices dropped by 5.2% to $364,900 from last year's $385,000.
The price increase comes as home affordability in California fell to its lowest level in 16 years, per a 2023 report from the California Association of Realtors. At the time the report was published, residents needed to earn at least $222,800 to afford a median-priced home in the state.
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