SoCal Home Sales and Median Prices in March

Southern California home sales increased sharply over the year in March, rising by 11.1% to 19,603 units (new and resale houses and condominiums). This was only the third time in the last 12 months that home sales rose on a year-to-year basis. In spite of the increase, home sales were 18.2% below the average of 23,954 units for the month of March.

The median price across Southern California increased by 6.3% over the year to $425,000 and was the highest median price since it was also $425,000 in December 2007. On a year-over-year basis, the median price has risen for 36 consecutive months but was still 15.8% below the peak region-wide median price of $505,000 reached in mid-2007.

Sales of higher priced homes continue to drive market activity. Last month, the number of homes in the six-county region that sold for $500,000 or more, rose by 14.4% over the year and accounted for 38% of all home sales in March. Sales below $500,000 edged up by 2.0% and sales below $200,000 dropped by 17.8%.

It is normal to see a surge in home sales between February and March as buyers and sellers return to the market, but the big news in this report was the year-over-year sales gain. Sales have been held back by low inventory, especially in the lower price ranges, rising prices and credit hurdles. If higher prices encourage more people to put their homes on the market in the coming months, it would support more sales and help tame price increases. The median price in March was the highest in seven years and reflects both price appreciation from demand outpacing supply and a shift in higher-end transactions counting for a greater share of sales. 

Source:  http://www.corelogic.com/solutions/configurable-real-estate-data-reports.aspx/