The median price of a home in LA County real estate market rose by 4 percent in December 2016 compared to December of 2015 according to My News LA. However, the number of homes sold dipped by 5.5 percent.
CoreLogic reported that the median price of a Los Angeles County home was up $520,000 which is $20,000 more than the median price in December 2015. A total of 6,862 homes were sold in the county, down from 7,263 during the same month the previous year.
In Orange County, the median price was $665,000 last December which means that it is up 5.3 percent from $631,250 in December 2015. The number of homes fell by 0.3 percent, from 3,259 in December 2015 to 3,250 last month.
According to The Orange County Register, “The median price for all homes combined – or the price at the midpoint of all sales – shattered the all-time high in May and June this year, driven mainly by record prices for new homes. If the forecasts are accurate, the median for existing homes – still lagging pre-recession highs – also will set new records this year.”
Why are they on the rise? This growth is due to the improvement in the employment market, income gains and more people moving into homes of their own. Competition for the limited number of homes also is pushing prices higher.
The median price of a Southern California home was $470,000 in December which means that it’s up 1.1 percent from $465,000 in the previous month and up 6.8 percent from $440,000 in December 2015.
“Southern California home sales in December 2016 fell on a year-over- year basis for the first time since last summer, but there’s a caveat,” said Andrew LePage, research analyst with CoreLogic. “The number of deals recorded in December 2015 was artificially high, the result of then-new federal mortgage rules that caused delays for many transactions that normally would have closed the prior month. December 2015 also had one more business day for recording deals compared with December 2016.
Those factors outweighed whatever boost December 2016 sales got from the presidential election, which reportedly resulted in an initial surge in purchase mortgage applications as rising mortgage rates spurred some on-the- fence buyers to jump into the housing market before rates could edge higher.”