Updated: Sep 24, 2020. We will discuss the latest California housing market prices and trends and find out how they can affect the buyers & sellers in the coming months. After home sales bounced back in June, the California housing market continued to improve in August 2020 as home sales climbed to their highest level in more than a decade. The median home price followed the trend by hitting another high, breaking July's record. Lowest interest rates ever are bringing many motivated buyers into the market, which has led to the fastest sales growth in the California real estate market in a decade, as reported by C.A.R.
Sales for existing single-family home sales climbed above the 400,000 level for the second straight month since the COVID-19 crisis depressed the California housing market earlier this year. Sales were up 6.3 percent from July and up 14.6 percent from August 2019. This is an indication that buyers and sellers are beginning to realize that real estate deals can still be conducted despite the coronavirus pandemic. Sales of higher-priced properties are recovering faster than the rest of the market. August’s statewide median home price was $706,900, up 6.1 percent from July and up 14.5 percent from August 2019.
The yearly price increase was the highest recorded since March 2014 and larger than the six-month average of 4.3 percent observed between February 2020 to July 2020. The Central Coast and the San Francisco Bay Area had the strongest sales growth in August with both regions surging more than 10 percent in sales year over year. Zillow reports that the statewide median home value had gone up by 5.5% over the past year and going into 2021, home-price appreciation would pick up again and increase by 5.0% (August 2021).
Housing affordability is improving California due to lower mortgage rates combined with fewer new homes being constructed as the construction supply chain is impaired. This could lead to a more upward pull on California home prices. Unsold inventory is already at low levels (2.1 months), and reduced construction activity means that is likely to continue—especially if buyers respond to lower rates. The latest housing statistics for August 2020 are given below.