While Southern California real estate has remained hot over the last several months, data for October shows that homes sales have slowed down slightly while prices have gone flat when compared to September. Nonetheless, real estate within the region continues to be performing better than it did at the same time last year.
October Sales Figures
The total number of houses and condominiums sold in Los Angeles, Orange Riverside, San Bernardino, San Diego and Ventura counties fell by 5.5 percent when comparing October to September figures. Nonetheless, the 19,930 homes and condominiums sold within the counties in October is still 1.3 percent more than the number that was sold in October last year. Furthermore, last month’s sales were the highest they have been in October since 2013, at which time sales came to 20,150. Nonetheless, October 2015 sales were 14.5 percent less than the 23,303 average for the month of October that has been calculated since 1988.
Despite having year-over-year gains in sales for nine straight months, the 1.3 percent annual gain in October is the smallest gain to occur during this time period. The only month with a lower increase was February, with a 0.5 percent year-over-year increase in sales. Sales from the period spanning from January through October have increased by 9 percent when compared to the previous year, making it the second-highest ten-month period of sales in the past six years.
Southern California Real Estate Prices
In terms of the cost of purchasing a home in Southern California, the median price paid for homes in the region was $435,000 in October. While this figure is unchanged when compared to September, it is up by 5.6 percent from the median price of $412,000 in October 2014. Furthermore, the year-over-year median sales price of homes in Southern California has increased for 43 consecutive months despite the fact that October’s prices are 13.9 percent below the peak median price of $505,000 that was reached in March, April, May and July of 2007.
Altogether, home sales of $500,000 or more made up 39.8 percent of all sales in October, which is up only slightly from 39.4 percent in September and 36.4 percent in October 2014. The number of home sales priced at less than $500,000 increased by 0.8 percent in year-over-year figures, while sales of homes at $500,000 or more increased by 10.8 percent.
Ultimately, home sales in Southern California have been slowed down due to tight inventory and low affordability. Furthermore, a growing number of low- to mid-priced homes have been purchased in the region due to incentives such as low down payment Federal Housing Administration (FHA) loans with lowered mortgage insurance premiums. Increased use of these types of loans have helped to further increase demand in the region, thereby limiting the availability of homes within the most affordable markets.
If you are interested in learning more about the Southern California real estate market, contact our team of professional and experienced real estate experts. We specialize in luxury Southern California real estate within the region’s most exclusive communities.
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