Supply short of demand: Expert says housing prices climb due to lack of construction in California, Nevada County | SierraSun.com

Supply short of demand: Expert says housing prices climb due to lack of construction in California, Nevada County

Andrew Rolland
ncpcintern@theunion.com

Oscar Wei, a senior economist with the California Association of Realtors, said the minimum household income required to buy one of California's median-priced, single- family homes at more than a half a million dollars, would be $101,220 a year.

California needs 180,000 more homes this year to meet demand, but just 100,000 are planned for construction.

At that rate, said Oscar Wei, it’s likely the Golden State will be nearly 2 million short of the number homes needed by 2030.

Wei, a senior economist with the California Association of Realtors (CAR), said low inventory is the reason behind to rising prices around the state, including western Nevada County. The statewide median home price has hovered above the $500,000 mark for four consecutive months and reached its highest level — $555,150 — since August 2007.

According to CAR, June’s median price across California was up 0.9 percent from the prior month and was 7 percent higher than June 2016.

Closer to home, Nevada County’s median price was $380,000 in June, actually down 2.3 percent from May 2017 but 8 percent higher than June 2016. But according to county records, that median price has climbed from $250,000 recorded in fiscal year 2012-13.

Wei discussed the current housing market conditions during a talk with the Nevada County Association of Realtors earlier this month. His hourlong presentation also looked at the economy as a whole, including impacts of inflation, job opportunities, consumer confidence, and market uncertainty.

ON THE RISE …

Single family home median price

Statewide (price is up 0.9 percent from May, up 7 percent from June 2016)

June 2017 May 2017 June 2016

$555,150 $550,080 $518,830

Nevada County (price is down 2.3 percent from May, up 8 percent from June 2016)

June 2017 May 2017 June 2016

$380,000 $389,000 $352,000

Source: Data from California Association of Realtors

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