Homeowners in the Los Angeles real estate market likely saw the value of their properties jump in May, as prices surged with limited inventory and strong sales in higher-priced markets.
The statewide median price of an existing, single-family home hit $417,350, a 3.6 percent bump from the previous month and 31.9 percent year-over-year improvement - the largest annual gain in 33 years.
"It's encouraging to see median home prices across most parts of the state continuing to recover," said CAR president Don Faught. "The Bay Area, in particular, has been experiencing strong price appreciation, thanks to the region"s robust economic growth, extremely low housing inventory, and an increasing demand from international buyers."
Strong buyer demand has been one of the driving factors behind price increases, which has been fueled by affordable mortgage rates. In the past month and a half, rates have increased, according to Freddie Mac, but they remain historically low, helping keep buying activity elevated.