For May 2012, DQ News reported that 22,192 new and resale homes sold Southern California last month. That was up from April by 15.1% and up 20.6% from the 18,394 sold in May 2011.
The median price in the six county Southern County market rose to $295,000 last month. That was up 1.7% from April and 5.4% from May 2011. The median was the highest since September 2010.
The median is up for two reasons in addition to higher demand. First, there’s been a substantial decrease in the share of foreclosed properties, and second, there’s been a pickup in the share of coastal properties in San Diego, Orange, Los Angeles and Ventura Counties from 67.6% to 70% of all sales. Gains were strongest in the $300,000 and up price class.
“The market is being slowly nursed back to health by low interest rates, a modestly improved economy and, we suspect, a widening sense that the housing sector is at or near bottom. There’s still plenty of uncertainty swirling around out there. But it looks like more move-up buyers are concluding it makes sense in the long run to sell their homes now, even when it’s hard to swallow the price. The upside for many is a good deal on the next house, and the ability to lock in both a killer mortgage rate and a relatively low property tax base,” said John Walsh, DataQuick president.
There’s not much doubt now that the residential market is coming back slowly, but surely. Steady and slowly is good because it will prolong the recovery. We generally run 14 – 15 years peak to peak and trough to trough. If we start running 18 – 20% prices gain per year again it will certainly shorten the recovery.
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