Categorized | Featured, Residential

Southern California Real Estate Sales Up

Southern California Real Estate Sales Up
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If you are thinking about buying a house in Southern California, expect to pay higher prices compared to a year ago. Southern California saw a 20 percent increase in real estate sales in May and the median price hitting a 20-month high.

Southern California HomesDataQuick President John Walsh said in a statement about the increase in real estate sales for Southern California, “The market is being slowly nursed back to health by low interest rates, a modestly improved economy and, we suspect, a widening sense that the housing sector is at or near bottom.”

Home sales in San Diego County jumped by 21.5 percent in May, compared to the same month a year ago, while prices increased by 3.2 percent. In Los Angeles County, home sales increased 25.3 percent in May compared with a year earlier. For all of Southern California, real estate sales increased in May by 20.6 percent, and the median price for houses increased by 5.4 percent going from $280,000 to $295,000.

So why are prices of houses going up along the Western coast? DataQuick said one reason prices rose was increased sales activity in higher-priced coastal markets. Also, having low mortgage rates will help improve the economy with housing prices at or near a bottom low.  With the median price is still 40 percent below its peak of $505,000 in the middle of 2007.

Stuart Gabriel, director of UCLA’s Ziman Center for Real Estate said, “Housing has lagged the recovery overall, but we are finally seeing broad-based evidence of a recovery that is kicking into gear. My sense is that there is a broad perception among the potential home buyers that we are close to the low point in the interest-rate cycle and the home-price cycle, and housing affordability is about as good as it is going to get.”

Even though real estate sales in Southern California are booming, it’s still 14.5 percent under the average sales tally for May since 1988.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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