Slowdown in Southern California housing market?
The figures show that house prices in the region were at their highest levels in August this year for nearly seven years; however, there is also evidence to suggest that these price rises are now beginning to slow ‒ good news for house buyers in California but not for sellers.
The average house price in the region reached $420,000 in August. The average price in July was $413,000; in August last year it was $385,000. The annual increase of 9.1% is substantial; however, when calculated on a monthly basis, the rate has dropped to a single figure rather than the double figures seen for the last couple of years.
It has also been noted that the increase is just 5.4% in the traditionally more expensive parts of the region, with house prices still not reaching their pre-crash levels.
Expert opinion is that this is due to a lack of ‘bargain’ properties coming onto the market, with fewer foreclosures and rundown properties available. There is also the issue of tight lending conditions for those looking to buy a new property in California, despite a drop in mortgage rates. Others who want to relocate within Southern California may not have the equity they need to move up the property ladder, and some regions are seeing fewer houses being sold this year when compared to last year.
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