Mortgage and Real Estate News in California

Submitted by ptruong on Fri, 16 May 2025 - 16:53

California Housing Market Overview

Statewide Median Home Price: Projected to rise 4.6% to $909,400 in 2025, following a 6.8% increase in 2024. California Association of Realtors
Luxury Markets: Cities like San Jose have seen median sale prices reach $2.02 million, marking a 9.8% annual increase. New York Post+1Axios+1
Starter Homes: The number of California cities where a typical starter home costs at least $1 million has more than doubled over the past five years. Axios

Price Adjustments: Some areas, particularly in Southern California, are experiencing slower price growth due to high mortgage rates and increased inventory. Los Angeles Times
Affordability Challenges: High housing costs continue to outpace income growth, making homeownership increasingly difficult for many residents.news

Current Rates:
- 30-Year Fixed: Approximately 7.05%
- 15-Year Fixed: Around 6.00% Bankrate+1Forbes+1
Rate Outlook: Analysts anticipate mortgage rates will remain in the 6-7% range throughout 2025, with potential decreases contingent on broader economic factors. LBC Mortgage

SB 684 & SB 1123: These bills aim to streamline approval processes for small-scale housing developments, potentially increasing the supply of affordable homes. Wikipedia
AB 2011: Facilitates the development of affordable housing on commercially zoned lands, promoting mixed-income communities. Wikipedia

Development Delays: Projects in areas like Woodside face delays due to environmental concerns, highlighting the tension between housing needs and ecological preservation.