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Real Estate Market News: Southern California at a Glance

November 30th, 2012 | by: SM SOLD | Posted in : Client News, Real Estate News

Our friends at The Bowen Team posted new blog this week recapping the current state of Southern California\'s Real Estate Market.  The Bowen Team specializes in real estate local to Orange County-Coto De Caza, Rancho Santa Margarita, Ladera Ranch, Alliso Viejo, Mission Viejo, and and Foothill Ranch.  Read the blog every week by the Bowen Team to learn more from their expert professionals and to get the highest quality advice. 

Reaching a four-year high, the median for price paid for a Southern California home rose yet again this past September, ultimately achieving an overall forty-nine month high.

The median price paid for a home in the six-county Southland climbed to $315,000 last month. That was up 1.9 percent from $309,000 in August and up 12.5 percent from $280,000 in September 2011, according to San Diego-based DataQuick.  The median sale price has risen mainly for two reasons. First and foremost the increase in demand, triggered largely by very low mortgage rates, has coincided with a declining supply of homes for sale. Second, there’s been a big change in the types of homes that have been selling this year. Far fewer are heavily discounted foreclosures, and many more are mid- to high-end and upscale properties.

In September, a total of 17,859 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties.  It appears that approximately half of the 12.5 percent year-over-year gain in last month’s median sale price can be attributed to a shift in the types of homes selling. In September, price levels for the lowest-cost third of Southern California’s housing stock rose 13.2 percent year-over-year, while they rose 7.7 percent in the middle and 3.5 percent in the top third.

Meanwhile, sales have picked up in many mid- to-higher-cost markets this year. The number of homes that sold for between $300,000 and $800,000 – a range that would include many move-up buyers – increased 11.5 percent year-over-year.  Sales over $500,000 rose 9.6 percent year-over-year, while sales over $800,000 rose 5.2 percent compared with September 2011.  Overall the Southern California market has been driven by affordability, meeting the demand of a modest supply of homes for sale as the housing market is positively changing.

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