Luxury housing market SoCal

The California housing market continues to improve in 2014, posting higher home values and fewer distressed properties. The California Association of REALTORS® released data March 11 that found rising prices over the past five years has helped deplete distressed properties to nearly a fraction of where they were during the Great Recession.

In January 2009, more than half of all homes, 69.5 percent to be exact, in California were distressed, including real estate-owned properties and short sales. Today, only 15.6 percent, good for a 53.9 percent dip, homes in California are distressed. One major factor for this major decrease is the median home value boost from 2009 to 2014. The state’s median home price was at $249,960 in January 2009 and it has since increased by 64 percent to $410,990 in January 2014.

“The dramatic drop in the share of distressed sales throughout the state reflects a market that is fully transitioning from the housing downturn,” C.A.R. President Kevin Brown, said. “Significant home price appreciation over the past five years has lifted the market value of many underwater homes, and as a result, many homeowners have gained significant equity in their homes, resulting in fewer short sales and foreclosures.”

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In Orange County, the number of distressed homes fell from 60.3 percent in 2009 to 9.5 percent in 2014, and in Los Angeles County, they fell from 62.4 percent to 15.8 percent today.

Los Angeles Housing Market Today

The number of distressed properties in Los Angeles County is down 46.6 percent from 2009, and today, demand is high for homes in the area. The city of Los Angeles in particular has a strong seller’s market due to the low inventory of homes on the market. According to Altos Research, a California-based real estate analytics company, the market has been in favor of sellers for the past year. The Market Action index measures conditions to determine whether a market favors buyers or sellers with a neutral value of 30. As of March 7, the index was marked at 40.17, which was a slight uptick since the start of the month.

Looking at median home values, Los Angeles has seen a drop since reaching its yearly peak of about $585,000 in August. As of March 7, the median single-family home value was $484,250, looking at the weighted 90-day average. However, the seven-day average shows that since the start of the year, the median value has upticked to nearly $540k.

It’s great news for Los Angeles and the entire state of California that there are fewer distressed homes, but there is still a need for inventory in order for the city to make a full recovery.

If you’re interested in purchasing luxury real estate in Southern California, we would love the opportunity to show you this exclusive beach town. Please contact our team of luxury property experts.

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(all data current as of 10/22/2017)

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