SoCal Home Sales Rise, Price Gains Slowing Down

Since the investor fueled run-ups of 2013, markets across California and the nation have seen major lulls in sales – some worse than others. Agents and brokers across SoCal know this all too well. But for those of you who’ve felt the impact, I bring good news; home sales across Southern California rose in September – the first annual increase since this time last year and the most recent indication of a further recovering market.
rising home sales
According to San Diego based research firm DataQuick, home sales across Southern California rose 1.2% compared to the same month one year ago. While modest, this is the first annual increase since September 2013 and the strongest September in five years for these markets.

The total growth was largely led by Los Angeles and Orange counties, where sales were up 3.4% and 2.2% respectively. For San Diego, Riverside and Ventura countries, sales actually had a slight drop.

What caused this bump in sales? Price likely played a large factor.

While the median home price continued to rise in September, it was the first month in over two years where none of the six counties across Southern California showed double-digit price gains year-over-year, increasing by an average of only 8.1%.

Prices rose the fasted in Riverside and slowest in Ventura, moving up 9.7% and 3.4% respectively from the year before.

Furthermore, the average price of homes sold actually went down, dropping from $420,000 in August to $413,000 in September.

And for better or worse, price gains might continue to slow in the near future. At least this was one of the prediction made by a recent forecast from the California Association of Realtors (CAR).

Did you notice this recent bump in sales? What do you think fueled the recent jump in buyer activity? We’d love to hear your thoughts!