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:
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?