SoCal Home Sales and Median Prices in May

Southern California home sales increased over the year in May, rising by 4.9% to 21,644 units (new and resale houses and condominiums). This was the fourth consecutive yearly increase and follows a period during which sales fell in 11 of the previous 12 months. Although May sales were the highest for that month in two years, sales were still 14.4% below the average of 25,297 units for the month of May going back to 1988. Over the month, sales dipped by 1.7%.

The median price across Southern California increased by 2.2% over the year to $426,000. This was the smallest annual gain since median prices began to rise 38 months ago. Part of the slowdown in price appreciation was due to a higher share of sales in more affordable areas. The July median price was 15.6% below the peak price of $505,000 reached in mid- 2007.

Home sales continue to be below normal, but the housing market is slowly working its way back to a healthy state. There are fewer distressed property sales, and investor and cash purchases are down. Traditional buyers are returning to the market but affordability and credit continue to be impediments for many would-be buyers. 

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