For the first time in 2023, single-family home prices in California have surpassed those from a year ago.
The median price of a home statewide hit $832,340 in July, slightly above last July’s median of $830,870, according to the most recent data from the California Association of Realtors.
While not a significant increase, experts say it is still noteworthy because rising mortgage rates have put a damper on home sales and, likewise, on prices.
“[Prices] were rising through most of this spring month-to-month. But this is the first time we’ve been above the summer 2022 levels,” Jordan Levine, CAR’s Chief Economist, told KTLA.
Current mortgages average 6.79% for a 15-year fixed rate and 7.58% for a 30-year fixed rate, according to Bankrate – well above the historic lows of 2021.
“The reality is that consumers don’t qualify for as much as we did when rates were down at 3 percent, and that’s whittled the buyer pool a bit. But now, that initial shock has worn off,” says Levine. “Inventory is really the limiting factor, and that’s why you’re seeing prices going back up on a year-to-year basis. It’s just high demand relative to low supply.”
How low is the supply?
In July, there were roughly 29,000 single-family homes listed for sale in California, down 32 percent from July 2022. The high mortgage rates and low supply, Levine says, are creating a “double whammy” for the housing market.
“People don’t want to give up their current mortgage even if their house doesn’t work for them, and that’s leading to this erosion of affordability and rising prices,” he says.
Statewide outlook
The San Francisco Bay area continues to be the priciest in California with a median home price of $1,255,000, followed by the Central Coast ($985,000).
Far North is the most affordable region with a median price of $376,420 in July, CAR’s data show.
In Southern California, Orange County ($1,300,000) is the most expensive followed by San Diego County ($969,020). Los Angeles County has an average single-family home price of $851,540.
California Home Prices
| State/Region/County | Jul-23 | Jun-23 | Jul-22 | Price MTM% Chg | Price YTY% Chg | Sales YTY% Chg |
| Statewide | $832,340 | $838,260 | $830,870 | -0.7% | 0.2% | -9.0% |
| Condo/Townhomes | $645,000 | $650,000 | $643,250 | -0.8% | 0.3% | -16.5% |
| L.A. Metro | $790,000 | $775,000 | $780,000 | 1.9% | 1.3% | -16.2% |
| Central Coast | $985,000 | $984,500 | $950,000 | 0.1% | 3.7% | -5.8% |
| Central Valley | $489,000 | $480,000 | $485,000 | 1.9% | 0.8% | -14.4% |
| Far North | $376,420 | $389,000 | $405,000 | -3.2% | -7.1% | -16.7% |
| Inland Empire | $575,000 | $570,000 | $575,000 | 0.9% | 0.0% | -18.4% |
| S.F. Bay Area | $1,255,000 | $1,323,810 | $1,258,500 | -5.2% | -0.3% | -14.2% |
| Southern California | $830,000 | $815,000 | $808,000 | 1.8% | 2.7% | -14.0% |
| Southern California | Jul-23 | Jun-23 | Jul-22 | Price MTM% Chg | Price YTY% Chg | Sales YTY% Chg |
| Los Angeles | $851,540 | $832,210 | $846,320 | 2.3% | 0.6% | -16.2% |
| Orange | $1,300,000 | $1,260,000 | $1,231,000 | 3.2% | 5.6% | -11.0% |
| Riverside | $615,000 | $628,000 | $625,000 | -2.1% | -1.6% | -15.6% |
| San Bernardino | $485,000 | $470,000 | $490,000 | 3.2% | -1.0% | -23.5% |
| San Diego | $969,020 | $958,250 | $930,000 | 1.1% | 4.2% | -4.9% |
| Ventura | $920,000 | $927,500 | $920,000 | -0.8% | 0.0% | -19.4% |
