According to a California Association of Realtors report released in July, Bay Area single-family home prices rose 7.9 percent in June from a year earlier, outpacing the 7.0 percent statewide price increase, and Bay Area home prices remain far more expensive than statewide home prices. The Bay Area’s median price of $908,740 for single-family homes was far greater than the statewide median sale price of $555,150. Looking at some of the prices in other areas of the region and it paints a grim picture for perspective home buyers. For Example, the median price rose 12.6 percent year-over-year to $1,182,500 in Santa Clara County and 12.1 percent to $900,000 in Alameda County. C.A.R. President Geoff McIntosh stated,
A lack of available homes for sale continues to be the largest single factor influencing California’s housing market. With active listings 13.5 percent lower than last June, we’ve now experienced a full two years in which active listings have fallen on a year-over-year basis and the lowest inventory level this year. Would-be sellers aren’t listing their homes as many of them would also face an inventory challenge if they were to turn around and buy another property.
The report claims that the highest per-square-foot prices in the state were in the Bay Area. At the top of the list was San Francisco ($909 per-square foot), followed by San Mateo County ($848) and Santa Clara County ($662). Tight inventory combined with buyers’ desperation, has been spurring sales on a year-over-year basis. The volume of sales was up 2.4 percent across California and 6.1 percent in the Bay Area. At this rate, it is hard to tell how high housing costs will rise, but something must be done to control the housing crisis.