DataMarkets & Economy

Affordability, inventory continue to be an issue in California

Despite San Francisco seeing an increase in inventory, state supply remains tight
  • Median home price for a single-family home in California through the month of July was $509,830.
  • San Francisco County had the highest price per square foot, at $824.
  • The statewide median number of days it took to sell a single-family home went down to 28 days, one day lower than July 2015.

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Despite remaining above the 400,000 home sales mark for four consecutive months, fewer homes than forecasted are selling in California, according to the California Association of Realtors (CAR), which points to affordability and low inventory as the culprits. “Despite the tight housing supply conditions that have persisted over the past few years, home sales have stayed relatively solid,” CAR President Pat “Ziggy” Zicarelli said in a press release. “Even with a shortage of homes on the market, low rates and strong demand have been the norm." Graph courtesy of C.A.R. CAR previously reported that affordability in California was an issue, with a statewide median home price of $516,220. According to CAR's data, one would need to make $101,217 per year to afford the median home price. "Some regions, such as the Bay Area, are seeing an uptick in inventory, as high prices are motivating sellers to list their properties for sale," Zicarelli said. "While this could ...