While real estate sales data throughout the state shows an overall positive balance in terms of the number of homes sold and the median prices on these homes, taking a specific look at real estate data as it relates to Southern California can sometimes paint a different picture. After all, Southern California is a unique part of the country and the state where demand and prices are frequently quite high. Fortunately, the data appears to indicate a healthy market in Southern California, though those who wish to purchase a home here can expect to pay more than in most of the rest of the state.
Sales of New and Existing Homes
According to data accumulated in July and August, sales of new and existing homes in Southern California fell by 12.2 percent when comparing the two months. On the other hand, when looking at last year’s data, sales were 8 percent higher in August of 2015 than they were during the same time last year. While 23,057 houses and condos were sold in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties in August of 2014, there were 21,352 houses and condos sold in these counties in August of 2015.
While these figures do represent the highest that they have been since 2013, sales were 18 percent below the August average of 26,031 that has been observed since 1988. On the other hand, sales have increased on a year-over-year basis from February through August, which represents the longest stretch of year-over-year gains the region has experienced since late 2012 through early 2013. The month-to-month drop in sales is likely attributable to the tightening inventory of homes combined with rising prices, making homes less affordable in the area.
The Rising Cost of Homes in Southern California
According to the data gathered for the month of August, the median price paid for a home within Southern California was $438,000, which remains unchanged from July. This figure is, however, slightly lower than the $442,000 that was reported in June. On the other hand, the price does represent a 4.3 percent increase from the median price of $420,000 that was reported a year ago. As such, these figures represent the 41st consecutive month in which the region has experienced year-over-year increases in median prices.
During the month of August, home sales of $500,000 or more accounted for 40.5 percent of all sales. Altogether, homes sold at $500,000 or more increased by 15.1 percent when comparing year-over-year data, while the sale of homes below $500,000 increased by just 4.6 percent. Sales of homes of $800,000 or more increased by 9.5 percent while sales of homes at $1 million or more increased by 12.7 percent during this same time period.
If you are interested in learning more about the Southern California real estate market or if you are ready to start looking at some of the most luxurious homes within Los Angeles’ or surrounding region’s most exclusive markets, contact our team of real estate professionals. We specialize in helping our clients find the best homes within the area’s most prestigious neighborhoods.
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(all data current as of 6/24/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.