State Home Prices Heading Back to Pre-Recession Levels

image006(11)By Staff Reports

(Victor Valley)– Prices of existing homes are a major economic indicator, closely associated with trends in California’s assessed property values. According to the California State Board of Equalization’s latest issue of Economic Perspective, in 2015 California median home prices averaged $473,995, which is 85 percent of their 2006 peak value of $560,641 (see figure 1).

The median, or middle, price of existing detached single-family homes is an amount at which 50 percent of homes were sold at higher prices and 50 percent of homes were sold at lower prices. While median home prices are an imperfect measure of the current value of any individual home, they do provide important information regarding the overall health of residential real estate markets.

“The increase in property values is welcome news for homeowners hit hard by the Great Recession,” said BOE Member George Runner. “But as California’s economy continues to recover, if we want to see more homeowners, we’re going to need more homes.”

Los Angeles metro (which includes Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties) median home prices were at 82 percent of 2006 prices, and Inland Empire prices lagged at 76 percent. Median home prices in the San Francisco Bay Area in 2015 stood at 107 percent of 2006 prices (see figure 2).

San Francisco has the highest median price, well over a million dollars ($1,254,784) and 265 percent of the state median ($473,995). Six of the top 10 counties are in the San Francisco Bay Area. At the other end of the spectrum, median prices in 2015 were $164,085 in Siskiyou County, only 35 percent of the state median.

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George Runner represents the State Board of Equalization’s First District and is a leading advocate for California taxpayers. Prior to being elected to the BOE, Runner served in the State Legislature where he authored California’s Amber Alert and Blue Alert. As a member of the Senate Revenue and Taxation committee, he led the fight against tax increases and supported tax relief for all Californians. A thoughtful conservative, Runner’s priorities include improving the economy, business growth, education excellence, and public safety for all Californians.

The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects $60.5 billion annually in taxes and fees, supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes.  For more information on other taxes and fees in California, visit the California Tax Service Center.

Note: This news release may discuss complex tax laws and concepts. It may not address every situation, and is not considered written advice under Revenue and Taxation Code section 6596. Changes in law or regulations may have occurred since the time this news release was written. If there is a conflict between the text of this news release and the law, decisions will be based upon the law and not this news release. For specific help, please contact the BOE at 1-800-400-7115.

 

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