The California Association of Realtors predicted on Thursday that median home prices in California could rise 5.2% in 2022 to a record $834000.
House prices in California have risen by about 20% this year, well above the national average. According to the National Association of Realtors (NAR), the median price of a single-family home in the United States is about $357000.
Jordan Levine, chief economist of the California Association of Realtors, said: "as the economy improves, demand for housing will continue to outstrip supply, leading to a rise in house prices in 2022 and a slight decline in sales."
The housing shortage and rising mortgage rates mean that only 23% of households in California can afford the current median home price, the report said.
California accounts for four of the five most expensive real estate markets in the United States, led by Silicon Valley metropolitan areas of San Jose, Sunnyvale and Santa Clara, with median prices of $1.7 million.