California is seeing a huge luxury boom, with home prices soaring in cities like San Francisco and Los Angeles and dropping in other parts of the state, according to new data from real estate analytics company RealCast.
Here’s a look at how the market is shaping up:California’s luxury home marketThe California luxury housing market is booming.
It is currently the No. 3 largest market in the U.S. behind Texas and New York.
The market, however, has been underfunded by over $1 trillion since the Great Recession and remains the largest in the country.
According to RealCast’s analysis of over 500 listings in California from January through September, the median sale price was $3.4 million.
That was a jump from $2.3 million in February and $1.4 billion in March.
The median asking price was up 5.9% from the previous month, from $3,853,000 to $4,869,000.
That’s a big jump, but not as big as some of the markets that saw huge increases in sales.
In fact, the price of a single-family home rose by 9.1% over the past year.
That’s the largest jump for a single property in the last two years.
In some cities, such as Los Angeles, prices are climbing even faster than California’s, which is why the median price is still more than $3 million.
In San Francisco, it was $4.7 million.
According to Realcast, it is likely that prices are going to keep climbing in California, especially if the state manages to implement a “land value tax” to discourage developers from building on land it does not already own.
California has had a “slow but steady rise” in luxury home sales, which can be attributed to both the state’s affordability and the market’s current strength, said RealCast Chief Economist Jeff Bercovici.
The average sale price in Los Angeles rose 14.1%, to $2,988,000, while the median listing price was down 8.7%.
In San Diego, prices jumped 14.3%, to just under $3 billion.
But in other places, like Riverside, home sales are down in some parts of town.
Bercicovici said it’s likely the market will recover in the near term.
He added that, even though the overall market has been growing, it still looks like some of these high-end areas are experiencing an “unusual boom” with the exception of the Bay Area, which has seen a slow but steady decline in luxury sales.
For more information about the California luxury market, check out this map from RealCast: