$1 million as a baseline for a California home? Think again, some experts in the state believe.
Housing experts said the changes in the sale of homes may keep the average cost of homes in the state under $1 million.
Victoria Aguilar with a Beverly Hills real estate firm told KNX News’ Pete Demetriou there are already signs sales are increasing, which means prices are either dripping or holding steady.
“We are seeing the usual seasonality that we see come spring and summertime months where we have more inventory on the market,” Aguilar said. “The average day that a home will sit on the market is about 18 days, which is different from the national average, which is about 30 to 40 days.”
She noted there’s been a reluctance for homeowners to sell a home with a 3% mortgage because they’d have to buy one at 7%. The low rates were fueled by government policies to restore the economy that had suffered from a COVID-19 downturn. The new norm for mortgage rates will be between 6% to 7%.
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There’s also a desire to move closer to job locations as employers want workers back in the office as a requirement to obtaining and keeping a well-paying job.
A report that came out in May by the California Association of Realtors said the current average for a single-family home in the state is $900,000.
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