Median Home Prices Hit Record In Southland!
Median homeprices hit record in southland even as sales slumping could point to market slowing down. So Cal prices jumped 8.2% in May, hitting an all-time high of $530,000 overall. June, (the latest complete month available), saw it climb even higher to $536,250. Specifically, Orange County was the highest at $739,000. LA came in at $615,000, Riverside at $380,000 and San Bernardino at $334,000.
Short supply and low interest rates, which has been the buyer’s mantra this past spring buying season, may be coming to a close, as well as Sellers’ fantasies as to pricing their home. Sluggish sales indicate a waning housing season, but also slightly climbing interest rates, (at press time they were approximately 4.6%, a new high, but of course these rates can change moment by moment and this rate is anecdotal only). The truth may be that buyers who have more discretionary income and could tolerate bidding wars, and mandatory appraisal removal contingencies, have all bought and moved. The buyers who remain have no such luxury and sellers may do best for themselves by believing their buyer who says this is my final and best offer.
There is always a learning curve when a market starts to turn…either buyers stalling and refusing to believe the prices, or as in this case, sellers not wanting to believe that their party may be over. Sellers may continue to price listings a bit too high, against agent protestations to be realistic to comparable sales etc, and may find their properties sitting rather than garnering offers as might have been true even 60 days ago. Competition will continue to increase for sellers and buyers will continue to get more selection. It is the natural course of a real estate cycle. We just haven’t had a natural course for a while.