As seen on: DQnews.com
La Jolla, CA—The median price paid for a Southern California home rose again in September to a more-than-four-year high, the result of affordability-driven demand meeting a modest supply of homes for sale, and a big change in market mix. For the first time in nine months sales declined compared with a year earlier as low-end deals fell and foreclosure resales hit a nearly five-year low, a real estate information service reported.
The median price paid for a home in the six-county Southland climbed to $315,000 last month. That was up 1.9 percent from $309,000 in August and up 12.5 percent from $280,000 in September 2011, according to San Diego-based DataQuick.
Last month’s median price was the highest since the median was $330,000 in August 2008. The Southland median has risen month-to-month for eight consecutive months and has increased year-over-year for the past six months.
The median sale price has risen mainly for two reasons. First, higher demand, triggered largely by ultra-low mortgage rates, has coincided with a dwindling supply of homes for sale. Second, there’s been a big change in the types of homes selling this year. Far fewer are heavily discounted foreclosures, and many more are mid- to high-end move-up properties.
It appears that not quite half of the 12.5 percent year-over-year gain in last month’s median sale price can be attributed to a shift in the types of homes selling. In September, price levels for the lowest-cost third of Southern California’s housing stock rose 13.2 percent year-over-year, while they rose 7.7 percent in the middle and 3.5 percent in the top third.
In September, a total of 17,859 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 20.4 percent from 22,438 sales in August, and down 1.6 percent from 18,149 sales in September 2011.
For the entire article, click here.
