Monitoring the housing market is an important step in making a property purchase. For those who are interested in purchasing a property in California, the good news is that the area is likely to continue to experience steady growth.
California Home Prices
According to the California Association of Realtors, California home prices have increased by 6.1 percent when comparing year-to-year data. Furthermore, the association expects to see a 6.5 percent gain for all of 2015. Meanwhile, prices in Los Angeles County are up 5.4 percent so far for the year and some luxury neighborhoods within the county have already surpassed the high that was reached in 2007. For the state of California, the figures represent the highest prices they have reached in eight years and are just 5 percent shy of reaching the record high that was set during the housing bubble in June 2007. Nationwide, median prices continued to rise during the third quarter, but at a slower pace that helps to make a real estate purchase more enticing to potential buyers.
For the Greater Los Angeles area, the median sales prices for single-family homes and condos increased by 8.1 percent, reaching $950,000 for the third quarter in 2015. These figures represent a record high for the area, which includes Downtown, the Westside and coastal cities such as Malibu.
Looking Toward the Future
Due to the lack of affordability that is expected to persist throughout many areas of Los Angeles combined with the area’s housing shortage, the price gap between affordability and list prices is growing. In addition to making areas outside of the city look more appealing to bargain hunters, some homebuyers and investors are concerned that Southern California is moving toward another housing bubble. William Yu, who is an Economist for the UCLA Anderson School of Business maintains that the market is not in a bubble despite growing costs.
By the end of the year, the California Association of Realtors expects to see sales figures reach 407,500 for single-family homes sold in the state. This will represent a 6.3 percent increase when compared to 2014 sales. 2016 figures are expected to reach 433,000 by the end of the year, representing a 6.3 percent increase when compared to this year. These projections are partially based on the act that the number of developers investing in new properties in the area has been on the rise. Overall, data indicates there has been a 2.4 percent increase in building projects. Nonetheless, the area will continue to suffer from a lack of inventory, thereby driving prices up further. Ultimately, the median price of a home in California will increase by 3.2 percent from $476,300 to $491,300.
Southern California remains a hot market for those who want to enjoy the lifestyle, climate, natural beauty and many amenities the area has to offer. If you are interested in learning more about Southern California real estate opportunities, contact our team of real estate professionals. We specialize in luxury properties in Southern California’s most exclusive communities and neighborhoods.
Below are properties available within the Southern California region priced from $4 Million to $8 Million. Contact our agents for more.
$4,895,000 : 2660 SKYWIN Way, Los Angeles5 beds, 4 baths
$5,450,000 : 903 LINDA FLORA Drive, Los Angeles8 beds, 8 baths
$4,500,000 : 1259 Edris St., Los Angeles2 beds, 3 baths
$6,650,000 : 1253 Edris St., Los Angeles2 beds, 3 baths
$4,149,000 : 716 N MARTEL Avenue, Los Angeles4 beds, 6 baths
See all City of Los Angeles Luxury Homes For Sale.
(all data current as of 10/17/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.