Supply hit historic lows, with an "unsold inventory index" of just 2.5 months toward the end of the year—the lowest level since 2004.
With high competition and limited stock, sellers in 2017 frequently required a mortgage pre-approval letter before even showing a property.
First-time buyers often turned to programs from the California Housing Finance Agency (CalHFA) for down payment and closing cost help.
The average interest rate for a 30-year fixed mortgage was roughly 4.0% , a slight increase from the near-record lows of 3.6% in 2016.
Buyers were encouraged to set aside 1.5% to 5% of the purchase price for closing costs, which in California include escrow fees, title insurance, and appraisals. Steps to Buying a Home | CA Housing Finance Agency - CalHFA
The statewide median price for a single-family home in 2017 was approximately $537,860 , representing a 6.9% increase from 2016.
California buyers are legally required to receive a Natural Hazards Disclosure Statement , which was particularly critical in 2017 as wildfires impacted regions like Santa Rosa .
In 2017, the California housing market was characterized by a severe inventory shortage that drove prices to record highs while slowing the pace of sales. Despite these challenges, the state dominated the national real estate landscape, housing many of the country's "hottest" and most expensive markets.