After a recent one year slumber of relatively flat home prices and low demand, the Southern California real estate market seems to have been jolted into awakening just in time for spring and summer!
The median home price climbed to $425,000 in the month of March, and economists are uncertain about how much more it can continue to increase.
Improved job growth over the last year is a key factor in this price increase, as people now have more confidence to purchase a home in expensive Southern California.
Sales increases are not just concentrated in one area of Southern California, either. There was a rise in sales in Los Angeles, San Diego, Riverside, San Bernardino, Ventura and Orange County.
L.A. county saw a 12.5% increase, and Orange County had an 8.9% increase. Demand for real estate has also been on the rise in the beach cities of Southern California, despite the fact that these areas did not experience the same slow down others did during the slump.
However, although home prices may be on the rise now, there’s no telling if they’ll drop back down again, or simply continue to increase.The low supply of homes and increased demand and prices means that California is becoming more and more out of reach for those with median or modest incomes.
If prices start jumping too sharply, this may mean that many have to leave California for other states, or at the very least, abandon pricey Southern California for the more affordable areas in the East and center of the state.
If you have the means and are thinking of buying a home, now is the time!
The housing slump is already over in Southern California, so your chances of purchasing a home at the relatively steady prices of this past year may be gone.
According to realtor data, Los Angeles, San Diego, and Orange Counties have less than four months supply of homes for sale. If things continue to go like this, there’s a chance that the L.A. real estate market will become something similar to San Francisco’s.
Whether or not you want to take the chance and wait is entirely up to you, but it may just be better to take the opportunity now if you’re able.
While we cannot predict what the housing market will do, spending a little more now will guarantee you a house in Southern California.
If you love the beautiful Southern Californian weather, sand, sea and lifestyle, then securing your future here may be well worth it!