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Real estate in Southern California has always been a roller coaster ride with the values at one point skyrocketing, and then falling during depressed times. Falling real estate values have been the case since the housing crash of 2008, but things are now beginning to change in the Golden State. Southern California home prices are starting to head north, and over the last couple of months they rose to their highest level in just under 2 years, according to the statistics compiled by DataQuick.
The increase has become very noticeable. The median price for houses and condominiums in the six- county region increased to $295,000; up 1.7 % from April 2012 and 5.4 %from May 2011, the San Diego-based data seller said in a released statement. One reason may be as simple as owner fatigue: the wish to hold on to property is starting to fade. DataQuick’s findings suggest that sellers who had been holding out for higher prices are becoming more willing to make deals so they can buy more desirable properties. The consequence is a higher than expected rise in the price of Southern California real estate.
The movement is also propelled by the economic decisions of real estate owners who are seeking a good deal now, so they can afford an even better deal in the real estate market later on. “It looks like more move-up buyers are deciding it makes better sense in the long run to sell their homes now, even when it’s hard to swallow the expected price,” DataQuick President John Walsh said in a released statement about the findings. ” There is a benefit attached to these decisions. The upside for many is a good deal on the next house, and the ability to lock in both a killer mortgage rate and a relatively low property-tax base.”
The consequence of the desire to sell and realize any gain can be easily spotted in the higher real estate sales figures registered in the region. A total of 22,192 homes sold last month in Southern California, which indicates an increase in sales of 15% from April 2012 and 21% percent from May 2011. The boom in sales appears to be concentrated in a few areas. About 70% of those sales realized were in coastal San Diego, Orange, Los Angeles and Ventura counties; up from less than 68% percent a year earlier, the company said.
The higher priced houses are showing dramatically higher sales figures. Homes priced at $500,000 or more made up more than 22 percent of transactions. This is a jump from 21 % from both the previous month and a year earlier, and these are the highest since July 2010, according to data collected by DataQuick. Real estate that is traditionally lower priced, surprisingly, are not generating significantly higher sales figures. Distressed deals including foreclosures accounted for less than 45 % of the total sales and this is the lowest percentage such transactions have been since March 2008; the beginning of the housing slump.
Aaron Norris specializes in hard money loans and private real estate loans in California. He blogs for them on their website and on top real estate investment websites. It’s easy to qualify for hard money loans -Visit & learn about california hard money lenders, & private money lending today.