Southern California Real Estate Market Rebounds: Unit Sales and Median Prices Both Increase in May
A total of 20,775 new and resale houses and condos closed escrow in San Diego, Orange, Los Angeles, Ventura, Riverside and San Bernardino counties last month. That was up 1.3% from 20,514 in April and up 22.8% from 16,917 a year ago. Sales have now increased year-over-year for 11 consecutive months. May’s sales were the highest for that month since May 2006, when 30,303 homes sold, but were 21.2% below the average May sales total since 1988, when DataQuick’s statistics begin.
The median price paid for all new and resale houses and condos sold in the six-county Southland last month was $249,000, up 0.8% from $247,000 in April but down 32.7% from $370,000 a year ago. The median price hadn’t risen from one month to the next since July 2007, when it increased 0.6% from $502,000 to $505,000.
"We appear to be in the early stages of the market gradually tilting back toward a more normal balance of sales across the home price spectrum. As more sellers get realistic, more buyers get off the fence and more lenders offer reasonable terms for high-end purchase financing, we’ll see a more normal share of sales in the more established, higher-cost areas that have been nearly comatose,” said John Walsh, MDA DataQuick president.
MP: Although the increases were small, the fact that both unit home sales and median home prices increased in May suggests that the Southern California real estate market has reached a bottom and is on the road to recovery.