After the presidential election, buyers are rushing to purchase homes in Southern California as mortgages rise. Based on the current national housing market, January has produced strong sales numbers in comparison to last year. Price gains are adding a four-year plus stretch of a rising market. That means there is a stronger market, lower mortgage rates, and a shortage of homes for sales. According to this LA Times Article, the median price for a new and resale home hit $455,000(in Southern California), which is a 5.3% increase for new and resales homes. According to real estate data firm, CoreLogic, there has been a 5.4% rise in the six- county region. That is the highest level it has been in four years, for the month of January.
Southern California Median Price
Analysts have reported that the election might have drove buyers to close deals faster because of their fear of rates rising. Despite median prices being higher than a year earlier, Southern California’s median price fell 3.2% from December. For the past nine years the median for home buying has been below the $465,000 level that was reached in June. This could mean that a peak in the market is approaching!
Understand that the month of January and February do not dictate how the housing market will be for the year. Although, the housing market cannot be predicted, home buying fluctuates in seasons. Spring is typically the home buying season, because it is busier! During the fall and winter months there is usually less demand to buy or sale homes. According to CoreLogic prices have climbed in all six counties on a 12 month basis. The median for Riverside County is 6.5% to $330,000.
According to Randy Hill, a real estate agent, he says that despite the concerns over the rising interest rates we can expect gains to continue based on the demands he saw from buyers from the start of the year!
“I had a crowd in there all day,” he said. “It’s resulted so far in seven offers and I think I still have more coming.”
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