Californias housing prices reach staggering new high as city drives sales through the roof

Pricey Bay Area home sales are sending California’s median housing prices to record highs, according to the California Association of Realtors.The median cost of a home in the Golden State reached $930,260 in May, a 2.3% increase from April and a 3.1% increase from the same time last year.At the same time, the Bay Area recorded a 3.6% jump in the median price for a single-family home in May.The median price in the Bay Area for a home that month was $1.45 million.Several Bay Area counties saw increases in their median home price, including San Francisco County, which recorded a monstrous jump of 22.2% since May 2025.

The median price there is $2.2 million.California's top news, sports and entertainment delivered to your inbox every day.

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Never miss a story San Mateo County saw a 9.1% increase in housing prices since May 2025, and Alameda County saw a slight 2.6% increase.Some Bay Area counties, like Marin and Santa Clara County, saw housing prices decrease slightly from last year.The California Association of Realtors said limited housing supply has placed pressure on sellers to increase prices.“Housing supply has remained constrained in recent months as the lock-in effect continued to put many would-be sellers on the sidelines, intensifying competition and placing upward pressure on home prices,” CAR Senior Vice President and Chief Economist Jordan Levine said.The group believes that housing prices will stay up once buyers return to the market.“While the statewide median price typically reaches its seasonal peak in May, the recent easing of tensions in the Middle East could bring more buyers back into the market and keep price pressures up at the start of the third quarter,” he added.CAR President Tamara Suminski said housing sales softened in May because of the conflict in the Middle East.See the group...