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Southern California housing frenzy fuels third record price in a row – Press Enterprise

What will change in a year?

In April 2020, Southern California home prices fell, shelter-in-place orders plunged sales by a third, and the economy was almost shut down.

However, in April of this year, the housing market boom surged for the 10th consecutive month, with sales reaching levels almost two years ago and home prices hitting record highs for the third consecutive year.

According to DQ News / CoreLogic figures released on Tuesday, May 25, last month’s median home prices, or mid-range prices for all sales, reached $ 655,000, $ 25,000 from March levels, last year. It has risen by $ 110,000 since April.

This was the second-largest annual profit of a record dating back to 1988, which concluded March 2013 for the second-largest monthly profit.

According to CoreLogic figures, the median for the region has reached a record seven times in the last 12 months.

April prices also hit record highs in five of the six counties, with a median Los Angeles county just comparable to the March record of $ 750,000.

Nicole Bashaw, an economic data analyst at the real estate website Zillow.com, said: “This is definitely a market we haven’t seen in a long time.”

Meanwhile, sales almost doubled from last spring’s pandemic panic to 25,857. This was April’s largest sales volume since 2005, up 86.2% from 13,889 sales in April 2020. This is the month when April sales fell to a record low.

Last month’s sales also increased 1.8% from March. Sales increased month-on-month in all counties in the region except Riverside.

Low interest rates on mortgages continued to drive demand, just as millennials entered their first home-buying year, according to economists. At the same time, they bought few homes.

Zillow reports that properties for sale have fallen by almost 20% over the past year, with 38,220 homes on the market in April. Realtor.com reported a 22% drop in LA-Orange County inventory and an almost 64% drop in Inland Empire inventory.

This volatile combination of high demand and too few lists fueled buying frenzy with bidding wars and rigorous buyer tactics. According to agents, many are forced to bid on invisible homes, abandon their mortgages, and even inspect contingencies that provide a comfortable exit if they discover a flaw in their transaction. did.

As a result, Zillow reported housing on average only 8 days in the Inland Empire and only 10 days in Los Angeles and Orange County.

“We keep our inventory low because it sells so fast,” says Basho.

Zillow figures show that about 42% of sales in the Los Angeles-Orange County market were above the seller’s asking price.

Bashaw and some realtors are in greater housing demand as the pandemic further boosts the housing market and buyers freed from office commuting demand more space for social distance and work. He said it was rising.

“We are seeing this opportunity,” said Basho. “Now the whole country is open to me, so I can go (where I want). You don’t have to live in the downtown area of ​​a big city.”

The median existing single-family homes also reached a record $ 720,000 across the region, setting records in all six counties.

Resale prices for condos reached record highs in all counties except San Bernardino, with a median region-wide of $ 550,000.

Median condos sold for $ 610,000 in Los Angeles County and $ 615,000 in Orange County.

The median and sales breakdown by county is as follows:

  • Los Angeles: Set a new March record at $ 750,000, up 19% from a year ago. Sales were up 101% to 8,381.
  • Orange: A record $ 872,750, up 15.6% from a year ago. Sales increased by 97.9% to 3,920 units.
  • Riverside: A record $ 489,750, up 19.7% from a year ago. Sales increased by 80.8% to 4,669 units.
  • San Bernardino: A record $ 436,500, up 23.7% from a year ago. Sales increased 66.9% to 3,347 units.
  • San Diego: A record 700,000, up 17.8% from a year ago. Sales increased by 74.1% to 4,347 units.
  • Ventura: A record $ 705,000, up 18.5% from a year ago. Sales increased by 82.4% to 1,193 units.

Southern California housing frenzy fuels third record price in a row – Press Enterprise Source link Southern California housing frenzy fuels third record price in a row – Press Enterprise

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