- Southern California home sales has seen the worst crash ever in the market, sending huge waves to the nation of yet another bubble that is about to burst.
- Sales of both new and existing houses dropped 11.8 percent Y-O-Y, with the prices shooting up to a record high according to data by corelogic.
- The supply for new homes in the 2nd quarter of the year rose at 3 times the rate of the last year according to data by Trulia
Los Angeles market trends indicate an increase of about $81,000 representing a 10% increase in median home sales over the past one year and the average price per square foot for the same period rose to $675 up from $608
Los Angeles is one of the most attractive areas in California but for the last few years, it hasn’t been so much attractive, with the homes sales reaching all-time record high. Is this the right time to settle? Especially in a hot market such as LA?
The last few years have been the most competitive, tightest and terrifying for the housing market in decades and the good news is that, the market could be loosening its grip and that could put a pressure on the overheated home prices. The 2nd quarter of 2018 saw the supply of homes, the all-important spring market, rising three times the rate of the same period in 2017.
CoreLogic reports that the southern California market median home prices surged 8.2% in May from a year earlier, hitting a new all-time high to record $530,000. This sharp gain in the median home sales was partly fueled by the lack of supply and low historical mortgage rates and an improving economy. The number of homes sales in the region fell 3.4% from a year earlier.
In LA, the median home price is almost $1 million as the bidding wars continues for the shrinking inventory. This means that if you’d like living in Los Angeles, be ready to fork over several million dollars if you are lucky enough to find what you are looking for. Experts say that for a full-size family home without much of commute, the buyers will have to pay at least $2 to $3 million and the price is dramatically changing.
In the western Los Angeles area, the Year-to-date median prices increased 20% to hit $1,225,000, if you are considering living in the that part of LA, be ready to move as fast as you can because homes in the area are not staying that much on the market. More to that, be ready for a price war, some 54% of the West LA home listing sold above the asking price.
The shortage of supply has been the blame for what’s is happening in the market right now. It may be the primary reason why most of the baby boomers are not downsizing. However, looking on the brighter side and the reason why the market has been tight, I think the main reason is the fact that developers can’t build enough housing to meet demand as there has been strict zoning laws and opposition from the existing residents.
For a long time now the Eastern side, especially the greater Pasadena Area, has been a favorable spot for downtown commuters, where 62% of all homes sold over the asking prices in April. However, prices in the Eastern LA are better than the West Los Angeles with a median tag price of $868,000, only 10% above the previous year.
If you are thinking about owning a home in Los Angeles, then there can never be a better time to buy than now. But, where do you go when you must live in Los Angeles area and you want to own a home? Some great areas to explore would be areas that weren’t your top options, remember, Los Angeles is a big metro area and all you have to do is open up to the endless possibilities of options available.