Categorized | Residential

Housing Market in Southern California Remains Down

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The Southwestern United States continues to see its residential real estate market struggle. Like the city of Las Vegas, Southern California has experienced declines at a greater rate than the rest of the United States in the past year.

Although housing sales are increasing in the region, prices remain at unprecedented lows. Prices are expected to continue their freefall into 2012, as foreclosures continue to dominate the residential property market. Analysts believe that home prices will hit their lowest point of the current drop midway through 2012, and will likely begin to improve again thereafter.

The residential real estate market news is not all terrible in Southern California, as the increase in sales volume indicates that consumers are looking to get back into the housing market. However, the glut of foreclosures that continues to grow within the current inventory will continue to drive prices lower and lower.

Housing prices have dropped between four and eight percent in Southern California, largely depending on the county. The median price of homes within the region currently ranges between two hundred and seventy-five thousand, and three hundred and thirty-five thousand.

Because the inventory of foreclosures continues to grow, the prices of new homes continue to drop as well. In some cases, new homes are selling for less than the cost it took to make them. Aside from the overabundance of foreclosures, the overall lack of consumer confidence has had a detrimental effect on the market as well. With so many current homeowners owing more than their home is worth, many are unable to upgrade to new homes, thus crippling the market even further.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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