[Asia Economy Reporter Yujin Cho] The housing boom in the U.S. sparked by the COVID-19 pandemic is expected to continue, with California home prices projected to maintain a sharp rise next year.
According to a recent report by Bloomberg, the median home price in California is expected to exceed $800,000 (approximately 956.8 million KRW) next year.
The California Association of Realtors forecasts that real estate prices will increase by 5.2% compared to this year, reaching $834,000 next year.
California home prices have already surged more than 20% this year, with the median home price far surpassing the national average of $357,000.
Jordan Levine, chief economist at the California Association of Realtors, stated, "With housing demand exceeding supply due to the economic recovery from COVID-19, home prices are expected to rise next year while transaction volumes will decrease due to a shortage of listings."
According to the association's housing affordability index, only 23% of households in California have the financial capacity to purchase a home amid soaring prices.
California, where home prices are the highest nationwide, has seen its housing affordability index remain below 40% for five consecutive years.
Four of the five most expensive housing markets in the U.S. are located in California, with the average home price in Silicon Valley’s San Jose, Sunnyvale, and Santa Clara areas around $1.7 million.
Despite the COVID-19 pandemic, the housing market’s rapid rise is attributed by foreign media to historically low mortgage rates and the young demand segment leveraging these rates to purchase homes.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
