We started off this year with record-low mortgage rates, but the good news for brokers and agents across California doesn’t end here! A new report shows that sales across Southern California are on the rise as price gains slow down – the most recent sign that the recovery is still underway, and a positive indicator of what’s yet to come throughout the year.
According to a recent study from San Diego-based research firm CoreLogic DataQuick, sales across the six counties in Southern California were up 4.3% in December compared to the year before – only the second time in over 12 months that sales have increased year-over-year. The total for both new and resale homes sold during the month reached an estimated 19,205, a prominent 22.8% increase from the month before.
Price gains on the other hand slowed during December with the median price for both new and resale homes reaching $415,000 – a .7% increase from November 2014 and a gain of 5.1% year over year. This figure has remained relatively stable since September of 2014, when the median price fell to $413,000.
Though the median sale price has been appreciating year-over-year for 33 consecutive months, the most recent figure is the smallest gain since April 2012, when the median price of $290,000 rose 3.6% from the year before.
Both the increase in sales and lessening of price gains are indications of further stabilization within the housing market. Since this time last year, price growth has dramatically slowed down, and further improvements in the economy paired with record-low interest rates are helping more buyers afford homes.
“One month doesn’t make a trend, but December’s uptick in home sales might indicate renewed interest in housing thanks to low mortgage rates and job growth,” said Andrew LePage, a CoreLogic analyst. “If demand continues we’ll need more supply to keep up with it. One of the big questions hanging over the housing market is whether high demand and home values will lead to a lot more people listing their homes for sale.”
Have you seen the increase in sales in your market? Do you think this trend will continue throughout the winter?