How California's premium housing markets are diverging

"California's most expensive housing markets are posting mixed results, with price per square foot ranging from $706 to $989 among top metros. While all significantly exceed state and national medians, their selling speeds and market conditions vary widely. Santa Barbara leads the state at $989 per square foot, followed by San Jose at $962. Both metros price well above California's $409 median and dwarf the national median of $213. Yet their market dynamics differ substantially."

"San Jose moves homes in a median 42 days with 28.3% of listings cutting prices. The metro absorbed 180 properties against 109 new listings last week, maintaining 1.4 months of inventory. These metrics place it in seller-favorable conditions. Napa presents a contrasting picture. At $706 per square foot, homes take 126 days to sellthree times longer than San Jose. Price cuts affect 38.4% of listings, and the market holds 4.8 months of inventory. The metro absorbed 24 homes while adding 14 new listings."

"California metros show elevated price-cut activity compared to the national rate. Napa leads at 38.4%, followed by Salinas at 35.2% and Santa Barbara at 32.5%. San Jose posts the lowest rate at 28.3%, still approaching the typical range. Statewide, 36% of California listings reduced prices, below the national 41.9% rate. This positions California metros between state and national averages, with individual markets reflecting local supply-demand dynamics."

California's priciest housing markets range from $706 to $989 per square foot, far above the state's $409 median and the national $213 median. Santa Barbara records the highest price at $989 per square foot, with San Jose at $962. San Jose moves homes in a median 42 days, with 28.3% of listings cutting prices and 1.4 months of inventory. Napa measures $706 per square foot and takes 126 days to sell, with 38.4% price cuts and 4.8 months of inventory. Statewide, 36% of California listings reduced prices versus 41.9% nationally. California shows 2.3 months of inventory compared with 2.9 months nationally, reflecting localized supply-demand differences.

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