The median listing price for California currently sits at a whopping $725,000. Although this is a staggering number, that is down 6.4% since June. Year over year it is still up 4.6%. California real estate is 64% higher than the national average which sits at $440,300.
With high interest rates and a high median listing price, it makes it difficult for people to buy homes. However, when interest begin to drop, I believe that prices will again begin to skyrocket. With the nation consumer price index being at 8.2%, the cost of things don’t seem to be slowing down. The only thing with housing is that interest rates are directly correlated to mortgages. When interest rates rise, a new mortgage gets more expensive.
California’s median rent for September is $3,128, which is up 12% year over year. This does seem to be slowing down just a little bit with the median for august at$3,159.
The median household income is still holding strong going up 5% from the previous year.
California currently has a price-to-rent ratio of 19.5. With rent being extremely high as well as home purchase prices, it makes it very unaffordable to live in California.