Markets & Economy

California home prices took record jump in January 2016

Supply levels of less than two, three months are driving sales prices
  • There is less than two months of supply in San Mateo and Santa Clara counties.
  • The average home in San Mateo, Santa Clara and Alameda counties sells in 23 days or less.
  • Levels of existing supply are down in all Bay Area counties on a year-over-year basis.

Existing homes throughout California are typically selling below list price, except in the San Francisco Bay Area. According to the California Association of Realtors (CAR), existing homes that sold in January within the Bay Area had an original list-to-sales price ratio of 100.3 percent. In January 2015 this ratio was at 100 percent. The primary reason more listings are selling above their asking prices, a lack of for-sale inventory within the nine counties that comprise the Bay Area. But the state as a whole did pretty well, too.   In the state of California, the price of a single-family home dipped by 4.3 percent in January from the previous month, but it was still an increase of 9.2 percent over the same month in 2015. Home prices are still gaining at a rapid pace in the state, with January's monthly uptick being the largest gain since May 2014.   “The fundamentals underlying the demand for housing fueled a healthy start to 2016,” said C.A.R. vic...