According to DataQuick the median price paid for a home in California last month was $299,000, the highest since it was $301,000 in August 2008. Last month’s median was up 2.7 percent from $291,000 in November and up 21.5 percent from $246,000 in December 2011. December was the 10th consecutive month in which the state’s median sale price rose year-over-year. In March/April/May 2007 the median peaked at $484,000, then it declined to a low of $221,000 in April 2009.
The Bay Area is kicking some major booty as well. Sales have increased consecutively for the 18th month in a row and the median price rose at its fastest rate in 25 years. The median price paid for a home in the nine-county Bay Area was $442,750 in December. That was up 1.1 percent from $438,000 in November and up 32.0 percent from $335,500 in December a year ago. Last month’s median was the highest since August 2008 when it was $447,000, according to San Diego-based DataQuick.
Prices are coming up, inventory is down, lenders are swamped with refinances, distressed properties are losing ground, unemployment is down…these are all signs leading towards a healthy economy. But not a healthy real estate market. Unless we start seeing some serious increases in inventory the market will continue to be a seller-dominated market.
The rate at which houses are currently appreciating can’t continue. If it does we will have another bubble and one pop was enough.