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Last updated on January 10th, 2022 at 09:02 am
Bidding wars and high prices are the things to face if you are planning to buy your California dream home. The prices are very competitive.
The home prices in California continue to hit record highs.
December’s statewide median home price was $717,930 which was up 2.7% from November and up 16.8% from December 2019 reported to the California Association of Realtors.
According to the California Association of Realtors, the decrease in active listings is the result of the surge in the coronavirus cases leading to homeowners remaining concerned about the worsening coronavirus pandemic situation.
Resulting in, C.A.R.’s Unsold Inventory Index (UII) dropping to 1.3 months in December, to match the record-low set of spring 2004.
The number of months it would take to sell the supply of homes on the market at the current rate of sales is what the index indicates.
Michelle Kolker with the Kolker Real Estate Group said that the imbalance of supply and demand is driving the prices and record-low interest rates and people’s desire for space added fuel to the fire.
Even if the home prices look different across the state, the driving factors are the same.
In January, in Bakersfield, there were only 385 homes for sale which is about half of what it was a year ago.
Ronda Newport, a realtor at Watson Realty in Bakersfield said that there’s less than a month of inventory, and the median price home is at $303,000, so they have exceeded that as their highest price home.
California’s Employment Development Department (EDD) reported the unemployment rate was 8.1% in November, and it increased to 9% in December.
So the number of unemployed Californians was 1,700,400 in December, that was an increase of 163,700 over the month and up by 945,700 compared to December 2020 last year the state saw a record unemployment of 16.4 %.
The unemployment rates and the housing prices both reached record highs.
Anurag Mehrotra, an assistant professor within the Fowler College of Business at San Diego State University said that it was not just happening with the housing market, but also with equities, and bitcoins, with oil, and across all commodities.
He also pointed out that along with all the housing factors, there are also a group of people who have well-paying jobs and are not in jeopardy of being unemployed.
So in some cases where a group of people is very badly affected by the pandemic, and another equally large group that has benefited from this pandemic leads to a K-shape recovery.
The president of the California Association of Realtors in a press release, in January, said that despite a shutdown in the spring buying season, the market still was able to recover the substantial sales which were lost in the first half of the year.
He felt that with mortgage rates expected to stay near the lowest in history, demand for homeownership will continue to be strong, so home sales will remain elevated into the first half of 2021.
Reference Source: 10 News
