The median sale price of a single-family home in California broke yet another record in May, placing the prospect of homeownership out of reach for more residents of the Golden State.
California Department of Finance data show the median price of a single-family home in May was $898,980, up a significant 1.6% over the previous month and an increase of nearly 10% over the same time last year. With mortgage rates spiking, the required annual income to afford the median-priced home in California is around $180,000 – more than twice the state’s median household income.
New data from Redfin also show California has by far the most expensive housing costs in the nation. April numbers from the national real estate firm showed California’s median home value was $100,000 more than the second most expensive state: Hawaii. Other western states also had far lower housing prices.
Redfin also reported earlier this month that the two markets with the most residents exploring a relocation were San Francisco and Los Angeles. “Expensive coastal job centers perennially top the list of metros homebuyers are leaving,” the company wrote.
While the top destinations for residents looking to leave those regions were in California – Sacramento for San Francisco and San Diego for Los Angeles – the pricey coastal metros are also bleeding residents to Seattle and Las Vegas, according to Redfin.
The Sacramento region remains one of the last relatively affordable real estate markets in California. Still, there are signs that could be changing as well.
The median home price in the Sacramento region in May was $625,000, according to data from Sacramento real estate appraiser and analyst Ryan Lundquist. That’s higher than all but four states (including California) and an increase of 11.6% over the previous year.