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

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.
ANDREW ROLLAND / THE UNION

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

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.

Support Local Journalism

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.


 

Support Local Journalism

Readers around Lake Tahoe, Truckee, and beyond make the Sierra Sun's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.

For tax deductible donations, click here.


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User