12/16/2023
Home prices have dropped dramatically across parts of California which had until recently been the most overvalued in the entire country, according to recent data.
The Golden State was affected by the same price correction that hit the United States housing market between late summer 2022 and spring 2023, though prices have slightly rebounded since then, as inventory remains low.
According to the California Association of Realtors (CAR), the median sale price of an existing single-family home in the state was $840,360 in October—down from $843,360 in September but up 5.3 percent compared to a year before.
In the same month, existing home sales rose by a modest 0.3 percent, though the number was 11.9 percent lower than in October 2022 as sales remained hindered by high mortgage rates.
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A new apartment complex being built in Alhamba, California, on September 6, 2023. Home prices have dropped significantly in several parts of California, despite modest growth on the state level.
FREDERIC J. BROWN/AFP VIA GETTY IMAGES
Amidst this situation, some urban areas have seen more dramatic price changes than others. In San Francisco, which for decades has boasted the highest home values in the Bay Area, the price of downtown condos has dropped to levels unseen for the past 10 years, according to a chart updated in November and released by Compass, a website that provides real estate market data and insights.
