So Cal Real Estate Leads U.S. Higher
If you live in Southern California and are looking to sell your home, you’re in for some good news. Home sales were up in June when compared to the same time last year. The median home price for the area was also up.
The gains seen in June represent the sixth increase in a row. Investors are snapping up homes and the market is showing signs of rejuvenation. Although sales in June are down 0.5 percent from May, there is still good news to be had. Sales for June 2012 are up a healthy 7.5 percent from June 2011. According to industry reports, a total of 22,075 homes were sold in the region comprised of six Southern California counties.
While experts agree that the numbers are encouraging, it’s not so clear if you look deeper into the data. While the median sales price is again up, some economists believe this has more to do with the types of homes that are selling, and less to do with a general appreciation in the overall market.
Foreclosures comprise fewer of the homes that are now selling. Instead, sales are primarily in the markets that contain mid and higher end neighborhoods with more expensive homes. Although sales for June are much stronger than they have been over the last year, they are still approximately 20 percent below average for the month.
Southern California’s median’s sales price has increased 1.7 percent from May and 5.3 percent from June of last year. The median sales price has now hit $300,000.
While the numbers show only a modest increase, experts do agree that this is an encouraging sign of growth after the recent housing market slump. Only time will tell if these numbers foreshadow a general trend of increases across the board.