So Cal home sales fall but median price rises to 4 year high

The fantasy real estate market continues.

The current goverment/FED artificial stimulus of Japan style interest rates coupled with banks self induced foreclosure moratoriums  seem to be creating a interesting dynamic:

  • Weaker sales- due to serious inventory shortage
  • Rising median pricing- Due to the lack of inventory and more higher end homes selling than before

From DQnews:

Southland Median Home Sale Price Climbs to 49-Month High; Sales Fall

October 12, 2012

La Jolla, CA—The median price paid for a Southern California home rose again in September to a more-than-four-year high, the result of affordability-driven demand meeting a modest supply of homes for sale, and a big change in market mix. For the first time in nine months sales declined compared with a year earlier as low-end deals fell and foreclosure resales hit a nearly five-year low, a real estate information service reported.

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.

Last month’s median price was the highest since the median was $330,000 in August 2008. The Southland median has risen month-to-month for eight consecutive months and has increased year-over-year for the past six months.

The median sale price has risen mainly for two reasons. First, higher demand, triggered largely by ultra-low mortgage rates, has coincided with a dwindling supply of homes for sale. Second, there’s been a big change in the types of homes selling this year. Far fewer are heavily discounted foreclosures, and many more are mid- to high-end move-up properties.

read entire article here: http://www.dqnews.com/Articles/2012/News/California/Southern-CA/RRSCA121012.aspx

From what it appears- this trend will continue. Expect a softening market in winter due to typical seasonality- but if the current policies remain intact though spring 2013-then watch out!  More bidding wars and new bubbles coming to a town near you

Just foreclose on everybody already – will ya?

One Response to “So Cal home sales fall but median price rises to 4 year high”

  1. Same thing in Las Vegas. Just did a couple of articles on some popular zip codes in Summerlin where total sales went down year over year but the average prices took a jump.

    http://www.lasvegasrealestatehome.com/blog/las-vegas-zip-code-89135.html

    34% drop year over year in sales reported, 24% climb in the avg. $ per square foot.

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