Southern California’s home sales prices on the rise! With more folks working from home and children taking on virtual learning, individuals and families are not only pushing to get out of their cramped spaces, but they’re pursuing to take advantage of record low interest rates. The average 30 year fixed mortgage rate is currently standing at 2.99%! In turn, with an increasing number of homebuyers entering a low inventory market, bidding wars are surfacing, and home prices are rising.
Specifically, DQNews recently reported, sales of new and previously owned homes, townhomes, and condos rose 27.7% from June and increased by 2.5% from the pre-pandemic days of July 2019. The median price of a Southern California home (the mid-point price of all sales), was $585,000 in July, up 8.5% year over year and up almost $30,000 from June’s record high.
That’s the biggest one-month price jump in CoreLogic’s 32-year-old database.
In Los Angeles County, sales rose 34.6% from June and the median home price rose 5.5% from a year earlier to $670,000.
In Orange County, sales rose 38.7% from June and 6.7% from a year earlier, with the median home price rising 6.3% from a year earlier to $775,000.
In Riverside County, sales rose 21.8% from June and the median home price rose 9.1% from a year earlier to $430,000.
In San Bernardino County, sales rose 22.3% from June and 8.1% from a year earlier, with the median home price rising 9.8% from a year earlier to $375,000.
In San Diego County, sales rose 19.6% from June and 6.6% from a year earlier, with the median home price rising 9.3% from a year earlier to $634,000.
In Ventura County, sales rose 27.5% from June and 2.6% from a year earlier, with the median home price rising 6.7% from a year earlier to $635,000.
Furthermore, seeking quick and smoothing closings, buyers are writing offers with very few contingencies (always great news for sellers).
One thing to note, if you are considering selling – now is a great time! Inventory is low and buyers are looking to take advantage of record low interest rates.
In fact, Southern California had just under 26,600 homes on the market as of Aug. 6 – this is a seven year low. By comparison, the region had almost 20,000 more homes for sale a year ago. Accordingly, although listings dropped 41%, sales contracts jumped 21%.
In other words, as a seller, you have a pool of qualified buyers desiring a home just like yours, and low inventory to compete with; thus increasing the chances of creating a bidding war on your property.
As Danielle Hale, the chief economist for Realtor.com states: “[The housing market is soaring due to] [s]trong levels of demand. Limited inventory. Along with low mortgage rates helping people stay in the market in a way most people are surprised by.”
Although the future of the economy is unknown given the pandemic and upcoming election, there’s always the concern of how buyers will react in the future, where interest rates will go, and whether as many buyers will be in the market.
Don’t let this opportunity pass by. If you’ve been considering to sell your home, contact me to discuss if this is the right time for you and your family’s needs.
As always, if you need any help listing or buying a home, please don’t hesitate to reach out.
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