Southern California home prices set fifth straight record as sales soar – Press Telegram

The Southern California housing boom surged in June, setting home prices fifth and sales jumping to their highest levels in almost 15 years.

DQ News / CoreLogic reported on Tuesday, July 20, that the median price of homes in Southern California, the midpoint of all sales, rose 22.5% in a year to reach $ 680,000. .. By comparison, annual price increases averaged 9.5%. 9 years.

On a dollar basis, the median surged $ 125,000 in the 12 months to June, the second largest year-long increase in records dating back to 1989. The only other month that increased year-on-year was May with a median. I jumped $ 131,500.

Record prices were also set in all six counties in the region. In Orange County, the median of all homes reached $ 900,000 and the median of existing homes exceeded $ 1 million for the second straight month. Median condos hit record highs in both Los Angeles County and Orange County, rising to $ 635,000 and $ 627,000, respectively.

“It’s crazy. Irvine-based Active Realty co-owner Susanne Seini said:” It’s hard for (buyers). I think they’re disappointed. “

Last month’s sales were 27,012, the highest in any month since August 2006. This averages over 1,200 home sales per day.

June totals were up 52% ​​from a year before sales fell due to the blockade of pandemics and the ban on open houses that just reopened last month. But more importantly, June sales were up 12.3% from the previous month.

According to experts, mortgage rates are the lowest ever, and more buyers are entering the year of home purchases, increasing demand for space during pandemics, which is the main reason for the increase in buyer demand. … apparently …

Some agents say things may have cooled slightly in July, but sellers still have all the cards in the market today.

Interviewed agents estimate that 70-95% of homes receive multiple offers. Buyers are still bidding on the asking price and making concessions such as waiving the right to kill the transaction if the lender’s valuation is too low.

Stephanie Vitakko, an agent at Keller Williams Encino-Sherman Oaks, said: “That was truly unprecedented. But again, we have never experienced a pandemic.”

Arash Yazdanian is an example of how cruel the housing market was for buyers.

In early 2020, Yazdanian, 44, and his wife sold Aliso Viejo’s home to increase the likelihood that the offer would be accepted in a home with a larger backyard for children to play with. Alternative housing. It would take over a year.

The Yazdanians saw nearly 100 homes and were overpriced by cash buyers for four.

“Recently, home financing seems strange,” said Yazdanian. “You made an offer, and they say,’We have a better offer for all cash.'”

The couple almost gave up. Then a five-bedroom house in Laguna Hills with a large garden and pool caught their eye. Now, their agents have advised them to bid at least $ 50,000 from the asking price and $ 200,000 or more from the original budget to withdraw the contingency of the appraisal. They agreed to escrow for only 22 days.

Their transaction ended on July 8th and is currently preparing to move in.

Yazdanian, vice president of the mortgage company, said: “You don’t have to look anymore.”

The June numbers reflect the first transactions signed in April and May.

However, both Sejny and Vitacco said the market has changed in recent weeks and buyers are hesitant to go far above the asking price.

“I’m out. I’m just going to keep borrowing,” Sejny said. “Things are not affordable.”

Fear of overpayment and the usual summer distractions of vacations and weddings have reduced screenings and intensified the bidding war, Vitacco said. Last winter, she said the house had received 100 shows and 20 to 30 offers in 10 days. Well, in the meantime there are probably 5 to 7 shows and 1 to 3 offers.

“It’s like someone has taken their foot off the pedal,” Vitacco said. “It’s not as chaotic as it was earlier this year.”

Buyers are also becoming more cautious, and some say they don’t want to buy at the top of the market.

“We haven’t seen an offer of $ 100,000 above the asking price,” said Seini. “And people are becoming more realistic about where the assessment comes.”

The list remains tight.

Zillow reports that the list increased 0.6% from May in Los Angeles and Orange County, increased 3.8% from May in the Inland Empire, but decreased 9% from a year ago in LA-Orange County, inland. Is down 30%. Empire.

How long will prices continue to rise?

Mortgage giant Freddie Mac released a quarterly forecast last week that prices will continue to rise until next year, but the pace will be much slower as mortgage rates rise gradually.

US home price growth is projected to reach 12.1% in 2021 but slow to 5.3% in 2022.

Sam Carter, Freddie Mac’s Chief Economist, said:

David Durji, an agent at Park Regency Realty in Granada Hills, expects prices to rise for another 8-12 months and will level off thereafter. “It doesn’t necessarily crash,” she said.

“The market can’t keep going,” Vitacco added. “Something will change. It will shift.”

The breakdown of the June figures by county is as follows.

  • The median of Los Angeles County rose 23.1% to $ 790,000. Sales were up 68.9% to 8,555.
  • The median Orange County rose 17.6% to $ 900,000. Sales were up 67.2% to 4,146.
  • The median of Riverside County rose 20.0% to $ 510,000. Sales were up 43.8% to 4,790.
  • The median of San Bernardino County rose 21.3% to $ 442,750. Sales were up 41.7% to 3,547.
  • Median San Diego County rose 24.9% to $ 750,000. Sales were up 34.5% to 4,789.
  • The median of Ventura County rose 22.7% to $ 736,000. Sales were up 47.6% to 1,185.

Southern California home prices set fifth straight record as sales soar – Press Telegram Source link Southern California home prices set fifth straight record as sales soar – Press Telegram

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