California home prices just reached a new record high

[SunSeeker]

Home prices in California reached a new record high in April as sales activity increased despite the state’s seemingly insurmountable housing shortage.

The median price of a single-family home climbed to $904,210 last month, nearly 6% higher than March and 11% above April 2023, according to data released on Friday by the California Association of Realtors.

Home sales also increased month over month and year over year by low single-digits.

California’s affordability crisis is well documented, and experts point to high housing costs as one of the key contributors. This makes owning a home in the Golden State, particularly in major metropolitan areas, a good investment. However, Levine says the barrier to entry is becoming increasingly high due to the housing shortage.

https://ktla.com/news/california/california-home-prices-just-reached-a-new-record-high/

[no_hypocrisy]

1. On the other side of the equation,

those homebuyers who COULD afford a house at almost-one-million dollars face a bubble that will potentially pop.

You buy a home for almost $1 million, the bubble pops, and your home is now worth $750,000 or less, but you are still paying a $900,000-plus mortgage (and interest, and property taxes, etc.). And if you sell, you've lost at least $150,000.

[SunSeeker]

2. I've been waiting for the bubble to pop for 15 years.

It ain't popping. Too many rich and upper middle class people want to live in California for the bubble to burst any time soon.

[CoopersDad]

3. It seems to be so. I live in Santa Cruz County.

Recently, I read that 30% of home purchases were cash, many above the listed price.
EDIT: 40%

Those weren't school teachers or firefighters paying cash.

It's F'ed up here because there is so much wealth among a few and they call the shots.

https://lookout.co/santa-cruz-county-home-sales-all-cash/

[CountAllVotes]

4. My house sold for $85,000 when I bought it

It was a run-down mess that had to be fumigated and cleaned and cleaned and cleaned 22 years ago. No one had lived in this house for two years. It stood empty with no buyers in site.

After it was painted inside and out and new carpets put down, we moved in.

Its has a 30-year roof on it now and the kitchen was remodeled as well with Pergo flooring in it that matches the new cabinets.

Today, if you believe Zillow, it is worth over $400,000.00+. Thanks to proposition 13, the taxes on it are low and I am able to stay here.

It is a small 2-bedroom house that is larger than a 2-bedroom apartment. It is also energy efficient and my PG&E bill was $17.56 last month thanks to the Climate Credit given out two months ago.

I'm not going anywhere much to my neighbor's dismay. They want me to sell and move. They can f/u as far as I'm concerned as I really am limited as to where I can live due to the temperature-related disability that I have and the fact that I am low/fixed income.

I have a local bonded landscape company that comes twice a month that maintains the large 6,000 sq. foot fenced lot it is on for $120 a month or less.

Its in a lovely part of California on the coast when the redwoods stand tall.

[SunSeeker]

5. Sounds like paradise!