In recent months Southern California has seen a slight cooling of the cutthroat housing market. Perhaps it is due to home shoppers tired of losing bidding wars and who, subsequently, put their search on hold temporarily.
As one Realtor put it: “What we are seeing is just a minor slowdown. Buyers can just expect slightly less pain.” Where once you might see 20 offers on a property, now you see 4. Better, but still not easy.
In October, home prices in the 6 counties of Southern California rose 14% from a year ago reaching an all-time median high of $690,000. Sales declined 6.6%, the first drop since June 2020.
Up until now, home prices were rising faster than they had for years for a variety of reasons: low inventory, record-low mortgage rates and an influx of millennials into the market. The pandemic also drove more people to seek out more space, and first-time home Buyers left pricey city rentals for a home of their own.
Most economist don’t see these price increases continue at the pace we have been seeing over the past couple of years, yet most homes still sell above their list price.
Here is a snapshot of what we have seen in the market over the past year:
- In LA County, the median home price rose 10.5% to $790,000, while sales fell 0.9%.
- In Orange County, the median home price rose 15.7% to $920,000, while sales fell 13.6%
- In Riverside County, the median home price rose 20.2% to $535,000, while sales fell 6%.
- In San Bernadino County, the median home price rose 16.3%, while sales fell 5.3%.
- In San Diego County, the median home price rose 13.8% to $740,000, while sales fell 12.4%.
- In Ventura County, the median home price rose 10.7% to $725,000, while sales fell 6.5%.
If you are thinking of wading into the market this coming year, now that the frenzy has waned slightly, but have been turned down for a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website www.sunpacificmortgage.com. We have helped thousands of Borrowers just like you achieve their dreams with a private loan from one of our many Investors.