SANTA CLARA, Calif. (KTVU) - The latest numbers show the median price for a single-family home in California is the highest it’s been in a decade.
“This house I sold to my clients September of 2012 for $528-thousand dollars. I put it on the market a month ago for $949-thousand and had 23 offers on the property,” said realtor Myron Von Raesfeld.
“We sold it for $1,180,000.”
Von Raesfeld said this house in Santa Clara is no fluke. And in Santa Clara County alone, it's jumped 17.9 percent year over year.
“There is just a tremendous amount of money and a tremendous amount of wealth here in our valley,” Von Raesfeld said. “It's being poured into real estate like I’ve never seen before.”
The result is people like Lisa Ruder are finding it nearly impossible to buy.
“It’s depressing, insane and hard to fathom,” Ruder said.
The Santa Clara County Association of Realtors says part of the issue is a lack of inventory, meaning stiff competition for the few homes available. And on average, those homes stay on the market for less than 10 days.
“It means that you have anywhere from maybe a day to maybe a week to decide on a million dollar purchase,” Ruder said. “If you take too long to decide, it's sold.”
And as prices skyrocket some people are taking a non-traditional approach, thanks to companies like Home-Savvy. The program essentially helps friends join forces and co-purchase in order to afford the down payment.
Still, realtors say, competition is so stiff for these million dollar homes that being able to afford the down payment is only half the battle.
“The problem is it doesn't work really well when they're dealing with 50-percent down offers or all cash offers,” Von Raesfeld said. “Those people tend to lose out.”
Von Raesfeld said he wouldn't be surprised to see a slight correction in the market by sometime next year. But for Ruder, it means she may be forced to rent instead of buy.