SoCal Home Sales and Median Prices in July

Southern California home sales increased over the year in July, rising by 16.9% to 24,235 units (new and resale houses and condominiums). Although sales fell slightly (-0.6%) over the month, the decline between June and July is typically much larger, averaging 6.1%. Sales have now risen on a year-over-year basis for six months and are approaching what might be considered a normal level. Last month’s sales were just 4.0% below average for the month of July, while in July 2014 sales were 18% below average. Cash, investor and distressed sales are continuing to trend down so that means more traditional buyers are jumping back into the market.

The median price across Southern California increased by 5.5% over the year to $438,000. The median price has now risen for 40 consecutive months and was the second highest (coming in just behind June 2015), since October 2007 when it was $445,000. With prices continuing to rise, the share of home sales priced above $500,000 is also increasing – 40.7% compared with a 37.7% share in July 2014.

Rising demand for homes is a result of the confluence of job growth, low mortgage rates and more confident consumers. Concerns about the Fed moving to increase interest rates also may have prompted some buyers to get off the fence, and now that eight years have passed since the housing bust, former homeowners caught up in the first wave of foreclosures may be returning to homeownership.

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