Most people can guess that California is a generally expensive state to live in. With huge cities like Los Angeles and San Francisco, the housing market is not cheap. Southern California statistics showed a dip in the housing market for the month of September. This time of year is traditionally a much slower season, and so there might be no cause for concern. Here is a look at how the housing market in Southern California changed last month.
Prices month to month
The real estate firm, CoreLogic, confirmed that the region of Southern California confirmed that the median price of a home in the area declined from August to September. The median price for a home was listed at $435,000 for the month of September, which is a 0.7 percent fall from the month of August. Even with this decline, home sales bounced back slightly after seeing a sharp drop in the month of August. Little dips in the housing market are not much cause for concern. The median housing price is off $7,000 compared to the month of June. The beginning of summer caused the housing market in Southern California to hit an eight year high, which followed a successful spring season.
Prices still up from last year
Even though there was a slight dip last month, there is good news for the Southern California housing market. Both new and existing homes and condominiums in Los Angeles, Riverside, San Diego, Ventura, San Bernardino, and Orange counties reached a total of 21,350 in sales in the month of September. This is a 13.1 percent increase from a year ago.
Reasons for the dip
Experts say that this small dip in the market is completely normal, especially in late summer and early fall. Families with children do not want to move their children after they have already started school. Others are just not interested in moving right before the end of the year. CoreLogic analysts say that this dip in the median is completely normal, and should not alarm anyone. The Southern California area is more than likely going to see a rise in the months to come, especially once the holidays are over.
Median Sale price
Even with September’s median sales price down 0.7 percent from August, the median sales price has risen every year for the past 42 consecutive months. The reason for this median sales price might be due to the types of homes that are being sold, as well as prices that have made the homes less affordable. Data has shown that the more affordable markets were purchased by many first time home buyers. These markets have posted some of the highest year- over- year price gains in the recent months. Sales of homes costing over $500,000 accounted for 39.4 percent of all sales in September, which is up from 36.9 percent in September of 2014. Again, these numbers prove that a little dip will not affect the housing market very much because there is an increase from the last year. The housing market aims to do better from year to year, rather than month to month.
Statewide housing market
The California Association of Realtors posted housing market information for the state of California, in the month of September. As expected because of the seasonal slowdown, statewide home sales declined 1.5 percent from August. Sales of existing, single-family homes in the state of California did rise 6.9 percent from a year ago. This makes it the eighth year of an increase seen yearly, as well as the sixth straight month that it has surpassed the 400,000 mark in sales.
From this information, Southern California, as well as the state, doesn’t seem to have an issue moving forward. A slight dip in the housing market was actually expected because of the seasonal change. Moving forward, the state will most likely continue to see an increase in sales, on a yearly scale. With only a slight dip in the market, but consistent yearly sales, the question ponders. Are more people moving to California from other states? Are more Californian’s taking the plunge and purchasing rather than renting? What are your thoughts? Whatever the case may be, it seems the state of California, Southern California specifically, has nothing to worry about when it comes to the housing market.