California Home Prices Jump to New Highs
Overall home prices in the state of California far outpaced the national average in 2021 with increased demand in smaller metros like Riverside and Sacramento, The New York Times reports. In October, the median sale price of a single-family home in California rose 12.3% year-over-year to $798,440, more than twice the national median sale price of $353,900.
Though cities with less population density reported high demand and strong sales growth in 2021, major cities like Los Angeles also saw increased market activity along with luxury markets in affluent communities like Montecito.
The real estate market in California mostly mirrored the national trends in 2021, with home prices increasing by double digits in the more affordable, outlying suburbs and in smaller metro areas like Riverside and Sacramento. In urban markets like San Francisco, the increases were more modest — at least by 2021 standards.
Sacramento was one of the most in-demand destinations for buyers seeking bigger homes at relatively affordable prices. The “typical” value of a single-family home there in 2021 was $472,000, according to Zillow’s estimate — up 22.3 percent from 2020, but still far less than the statewide average. “The area has newer and bigger homes than its coastal neighbor to the west,” [Jeff] Tucker said, referring to San Francisco. “That’s a good example we saw of the trend in a lot of the country.”