After sitting quietly for most of the winter months, home sales in Southern California have finally picked up. Real estate data company CoreLogic reports an increase in home sales volume of 8.5 percent while home values have also continued to climb resulting in the median sales price of homes across the six-county region coming to $429,000. The increase in prices marks a 6.2 percent gain on the median value noted in April 2014.
April was the second straight month in which home sales increased, which is a positive sign for the Southern California housing market. A dwindling supply of homes has resulted in many buyers, especially first-timers, being forced out the market. Although prices continue to gain the market is continuing to work with these challenges and the result is a healthier market for all buyers. Just one year ago, prices were increasing by rates in the double digits and inventory was painfully low.
“When you’re rushed and paying more than you want, it’s not a fun experience,” said Paul Reid, a Temecula real estate agent with Redfin, to the Los Angeles Times. “But I think the inventory and relatively flat prices are giving people more confidence.”
Efforts are being made to contribute more homes to the market, both new and existing. In Riverside and San Bernardino counties building permits rose 7 percent. The Inland Empire has also seen a promising increase in existing-home listings, which may help to distribute home buyers a little farther from the coast which has the potential to help regulate home price increases in these hot-demand areas.
Santa Monica Luxury Home Market Heats Up
For luxury home buyers who aren’t afraid to dish out a little more money for a slice of heaven, the market in Santa Monica has been building and will be ideal as more properties come to the market. According to Altos Research, a California-based real estate analytics company, inventory is on its way up in Santa Monica which may help to quell the strong demand for homes here.
There are currently about 44 homes on the market in Santa Monica. This is still nowhere near the 57-home level seen last summer, but with inventory on a current gaining trend this market has great potential for luxury buyers.
Demand has been strong in Santa Monica, as indicated by the Market Action Index, which is a unique value that measures supply and demand levels using a scale that values 30 as neutral. With a current MAI of 48.87, this market is showing a tremendous amount of demand. With more buyers than available homes this is a very hot market, however home prices aren’t currently reflecting that. The median home value is actually on a downward trend, coming to $3,184,962 as of May 15.
With prices down and inventory trending up, now might prove to be a great time for the right luxury buyer to test out the Santa Monica market.
If you are interested in finding the perfect Santa Monica luxury home, please contact our team of experienced agents today.