According to the latest reports, the median sales price for homes across the US reached a historic high of $433,558 in April, marking a 6.2% year-over-year increase. This upward trend is widespread across the nation, but particularly notable in California's real estate market. In areas like San Jose, California, and Rochester in upstate New York, about three-quarters of homes sold in April went for more than the listing price.
Experts at the real estate brokerage firm Redfin attribute the persistent rise in home prices primarily to a severe shortage of listings. Despite a slight increase in new listings in April, data shows that inventory remains about 20% below pre-pandemic levels, as many homeowners are opting to hold off on selling due to attractive low mortgage rates.
In California, the median home price surged to a record high in April, surpassing the crucial threshold of $900,000. The latest report from the California Association of Realtors (C.A.R.) indicates that sales of existing single-family homes in California increased by 3% in April compared to March and grew by 4.4% year-over-year. This growth trend suggests that home prices in California may continue to rise in the coming months.
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However, rising home prices do not necessarily indicate a thriving market. Jordan Levine, Deputy Chief Economist and Vice President at C.A.R., points out that while the market showed robust performance in April, persistently high inflation rates and fluctuations in mortgage rates could impact the market's rapid recovery.
Apart from California, real estate market conditions vary across different regions. Some areas still offer room for negotiation in transactions, while sellers in other areas are resorting to price reductions to attract buyers. Redfin's analysis reveals that nearly one-fifth of homes for sale saw price reductions in April, indicating some degree of fluctuation in competition in the market.
Despite the overall upward trend in home prices in the US, market performance varies across regions. However, with inventory shortages and increasing demand, the US real estate market remains active, and its future trajectory is eagerly awaited.
