Low inventory means higher prices for California’s housing market

The California housing market rebounded in June with the largest month-to-month sales increase in nearly 40 years, and California’s median home price hit its own record high, the California Association of Realtors said. After the statewide median home price fell below $600,000 in May, it rose to $626,170 in June, which was up 2.5% from June 2019. This makes it the highest recorded May-to-June average, CAR said.

“Home sales bounced back solidly in June after hitting a record bottom in May, as lockdown restrictions loosened and pent-up demand driven by record-low interest rates roared back,” said CAR President Jeanne Radsick in a statement. “While the momentum is expected to be sustained as we kick off the third quarter, the resurgence in coronavirus cases remains a concern and may hinder the market recovery in the second half of the year.”

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