California Median Home Prices Rise Experiences Highest Year-to-Year Gains Since June 2004
As a present for all of the homeowners in California and especially in the Bay Area, home prices registered double digit gains from a year ago according to figures released by the California Association Of Realtors.
The numbers revealed that higher priced markets performed better than those in lower priced areas. In lower priced markets, home sales declined in comparison to mid-to-higher priced homes because of a greater supply.
The California median price of an existing, single-family detached home increased 2.3 percent from October’s $341,370 median price to $349,300 in November. November’s price shot up a remarkable 24.8 percent from a revised $279,910 recorded in November 2011, marking the ninth consecutive month of annual price increases and the fifth consecutive month of double-digit annual gains. The year-to-year percentage increase signified the largest since June 2004.
Bay Area Prices Climb 25.9 Percent From Last October
For the Bay Area, the recent median prices ticked down in November -0.7 percent to $588,800 the October high mark of $593,080. Still those numbers show a 25.9 percent rise from last October when median prices reached the $467,680 level.
San Francisco continued to show prices moving skyward with a 2.4 percent rise from October ($767,860 median price) to $785,940. Compared with one year ago the numbers reflect a dramatic 21.5 percent rise.
San Mateo county numbers show more softening in the torrid price gains. October to November prices actually sank 7.8 percent from $819,000 to $755,000 while the gains from October 2011 showed just a modest 2.7 percent gain.
The chief CAR Chief Economist Leslie Appleton-Young believes that California home sales and prices will likely remain solid moving forward, dependent upon the strength of the economy and if Congress preserves the valuable mortgage interest deduction for all homeowners. Of course the mortgage interest deduction continues to be a hot topic in Washington DC. Eliminating it would no doubt dampen the surging market. Many homeowners across the nation fail to use the deduction but a majority do here in California.