May Median Price Rise in California Largest in 33 Years

May featured the largest year-over-year median home price increase in California in the past 33 years, the California Association of Realtors said.

When compared with May 2012, prices in the state increased 32%, going to $417,350 from $316,460. From April, the price rise was less than 4%. There have been 15 consecutive months where median prices have increased on a year-over-year basis.

There are those questioning if a new bubble is rising. But said CAR chief economist Leslie Appleton-Young, “while home prices are increasing at levels above those observed in 2006-2007, the fundamentals of the housing market are much more solid than what we experienced a few years ago.

“More homebuyers are putting down larger downpayments and many of them are opting for more stable loan products.” Plus, she added, low rates have resulted in lower monthly, more affordable, payments.

DataQuick, San Diego, came out with its own data, showing prices increased in May 26% over the same month in 2012 and 5% over April.

The median price was $340,000–the highest for any month since the median was $354,000 in April 2008, DataQuick said.

In March/April/May 2007 the median peaked at $484,000. The post-peak trough was $221,000 in April 2009.