Southern California’s real estate market hit another historic peak in June, home prices are taking off to another all-time high. According to the Data by data firm DQNews, June’s median home price of $680,000 tops the previous record of $667,000. This represents a 22.5% increase from June 2020 when the market in the six-county region slowed significantly as sellers pulled homes off the market because of COVID-19 stay-at-home orders.
Since then, a dramatic rebound has seen 11 straight months of double-digit median home price rises. Experts credit multiple factors: fast-expanding buyer markets such as millennials, more demand for space as more people work from home, and ultra-low mortgage rates, which are attracting wealthy investors who compete with the middle class for limited housing stock.
“The low interest rates are creating a situation where it can be cheaper to buy a house than rent one, especially if you’re an investor looking to rent it out. That’s not normal,” said Jason Oppenheim, founder of Oppenheim Group and star of Netflix’s “Selling Sunset.”
As L.A. pulls out of the pandemic-induced recession, he said, the pent-up demand could make for a hot Southern California market through the rest of the year and beyond.
Sales are also on the rise, signaling a possible easing of the supply shortage that has caused bidding wars and seen properties sell for hundreds of thousands over the asking price.
Full article at LATIMES.COM
