California Real Estate Market Minute

In the first half of 2021, home sales for California surged above last year by 34%. Home prices continued to climb with the statewide median price of $819,630, a 21% increase over 2020, setting record highs for four straight months since March 2021. The supply remained tight as for-sale properties consistently dipped below year-ago levels by 40 - 50% in the first half of the year.

Despite the impressive performance in the first six months of the year, the market momentum appears to be slowing as we move into the third quarter. Per the latest housing report released by the California Association of REALTORS® (CAR.org), statewide home sales declined on a month-to-month basis for the second straight month in June, while pending sales dipped for the first time since May 2020. The housing market is showing signs of cooling down as we enter the 2nd half of the summer season.

What’s a good mortgage rate?
Any mortgage rate in the low to mid 3% range is very good by historical standards. Looking back just one year, mortgage rates started 2020 at nearly 4 percent. And they were above 4.5 percent in early 2019. So today’s rates are excellent by comparison.