Home prices are rising and listings are decreasing across the country but, arguably, nothing like in California. Since January of this year, the median listing price for a home rose by 34%, according to National Mortgage News. Now the median home price rests at $735,000. Blame this on the dried up inventory, which experienced a 46% decrease in listings compared to this time last year. National Mortgage News credits the price jumps to historically low mortgage rates as well, which dipped to 2.86% last week. On top of it all, sellers are more hesitant to list at this time.
Also, many owners don't want to sell due to the virus risks. If they did sell, they'd likely be uncomfortable shopping for another residence. Others are in financial distress or have economic worries and don't feel they could afford another home.
The supply of California homes for sale started 2020 relatively flat through mid-March when the pandemic and efforts to slow its spread became widespread. But instead of increasing as they'd do in a typical sale year -- especially in the prime spring homebuying season -- they've actually declined 21% since 2020 started. Adding to the price index's spike is a shortage of "affordable" homes for sale.