Southern California home prices surge in July amid shortage of supply
In Southern California as a whole, the median home price rose 7.7 percent to $501,000 last month, CoreLogic figures show. That’s up $1,000 from June to the highest median since prices in the six-county region peaked at $505,000 in July 2007.
The six-county area’s median price climbed 7.7% from a year earlier to $501,000, according to a report released Tuesday from CoreLogic. That was the greatest jump in nearly 2½ years and put the median just $4,000 shy of its all-time high set in the summer of 2007.
Home sales fell from June in all six counties and were up year over year in just two: Riverside and San Bernardino counties, which saw annual sales gains of 1.5 percent and 3.8 percent, respectively.
At 21,065 transactions, Southern California home sales also were down 2.3 percent from a year ago.
In some areas of the Southland, including Los Angeles and Orange counties, the median had already surpassed bubble-era highs — and hasn’t stopped climbing.
The median price in L.A. County in July was $575,000, up 8.1% from a year earlier. In Orange County, prices rose 7.9% to $690,000.
Across the region, sales dipped 2.3% from a year earlier, in part because of the shortage of listings.
In Riverside County, the July median price surged 9% to $365,000. Prices rose 7% in San Bernardino County to $305,000; 6% in Ventura County to $554,500; and 8.6% in San Diego County to $537,750.
The rebound — now in its sixth year — has been driven by a steadily improving economy, rock-bottom mortgage rates and a severe shortage of homes listed for sale.
California pending home sales trend lower in July from previous month and year
• The Southern California Region was the only major region to record an increase in pending sales from the previous year – the third straight annual gain. Los Angeles, San Bernardino County and Orange County saw healthy spikes of 4.0 percent, 6.0 percent, and 4.6 percent, respectively. Pending sales in San Diego (-5.8 percent) and Riverside (-4.2 percent) counties declined from last July.
• Based on signed contracts, year-over-year statewide pending home sales fell in July on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* declining 2.6 percent from 122.5 in July 2016 to 119.4 in July 2017. California pending home sales also edged down on a monthly basis for the first time since March, decreasing 0.9 percent from the June index of 120.4. • Pending home sales have declined on an annual basis for six of the last
seven months so far this year, however, the pace of decline has slowed in recent months. After a solid run-up of pending sales growth in April, May, and June, continued housing inventory issues and affordability constraints may have pushed the market to a tipping point, suggesting the pace of growth will begin to slow in the fall.
Year-to-Year Change in Pending Sales by County / Region