The C.A.R. released the latest sales data for August, including the graph above.
The sales-price-to-list-price ratio has been dipping in the off-season lately, and we can probably expect that streak to continue this year!
Buyers expect to have more negotiating power, and the fixers are the ones that get punished. Sellers will be smart to do more improvements to their home before hitting the open market!
In Los Angeles County, the median price surged 9.4% to a record $580,000. The previous record of $575,000 was set in July.
It was the best August for home sales since 2006. Total sales in Southern California were up 3.2% year over year and surged 13.3% from a sluggish July, CoreLogic said.
The August home price for the six-county region was just below the all-time high of $505,000 reached in 2007 at the height of the housing bubble. The market began collapsing soon thereafter.
But it’s been rebounding for the last six years, fueled by a slowly improving economy, historically low mortgage rates and a shortage of homes for sale.
“The market’s just chugging along,” said Tregg Rustad, estates director for Rodeo Realty in Beverly Hills. He and his partner sold 10 houses in August — half were at or above the list price and the rest were very close to it.
“Buyers are taking advantage of some of the lowest interest rates we’ve had in the last year. The economy is continuing to improve and the stock market and financial sector is up, so confidence is up,” Rustad said. “And I think sellers are taking advantage of record prices and low inventory.”
Home prices in the region can’t keep rising 7% a year and will probably moderate to between 3% and 5% annually for the foreseeable future, said Richard Green, director of the USC Lusk Center for Real Estate.
“Unless there’s some existential event like a nuclear missile hurled in our direction,” he said, “I don’t know why prices are going to fall any time soon.”
Governor Moonbeam is working hard to ensure high housing prices in California throughout our kid’s lifetime, certainly during what’s left of mine, via his “Sanctuary State” policy that cities are now imitating. That means less housing, and more unpleasant rental increases for years to come.
Longtime California homeowners, and especially longtime landlords, have the interesting position of experiencing what it’s morally like to be a mortgage lender before the housing crash, which may give them empathy for the little poor mortgage broker in Lancaster, just trying to make a living, and getting people loans.
They all be like, “Yeah, we know it’s bad for everyone in the long run, but what are ya gonna do? Make waves? Nah. Wheeeee!”
Legal or Illegal….it is what it is…people need a place to live…and the government has crippled new home and apartment builders with mello fees, permit fees, air breathing fees…to make the cost of building and selling out of most CA’s residents pocketbook. It means more people need to rent. The rents are higher as the costs have gotten higher to build it..and people are upset….this in my opinion is the BEST it is ever going to be get a 30 year fixed LOW rate home loan period…dont get used to these rates and if you think the Calif Legislature has fixed the building problem watch lawsuits holding up everything..not in my neighborhood is far from being dead. It is interesting now that the major media has gotten on the affordable housing crisis bandwagon that the environmental folks have been quiet.
Prices will go up and down or sideways..but the cost of money is gonna rise and rates are going up, you would be crazy not to get a FIXED home cost over then next 30 years at this historic time…and I promise you, 30 years from now that payment is gonna be laughed at…just my dads house payment was at $525 per month and his dads at $235 per month
“Legal or Illegal….it is what it is…”
The weather is what it is. If you’re poor and/or uneducated, your life is what it is. Immigration policy was created by people, not random unchangeable elements.
“people need a place to live…and the government has crippled new home and apartment builders with mello fees, permit fees, air breathing fees…to make the cost of building and selling out of most CA’s residents pocketbook.”
You must be new around here. California’s just getting started. The middle-class is toast…
“It is interesting now that the major media has gotten on the affordable housing crisis bandwagon that the environmental folks have been quiet.”
I don’t know what you’re getting at. Environmental folks in California have been on the pro-immigration bandwagon for a long time, and they’re completely corrupt. Head up to jammed-packed-with-people Yosemite some summer, or read about the drug manufacturing raids in Sequoia National Park (Feds have even had helicopter-dropped narco raids in Lake Arrowhead forest), and see how that’s been working out for them–and us.
Daytrip let explain what I mean about the anti growth… low flush toilet and recycled house material folks.., not hearing any protests about this build up or granny flat add ons…used to be you cut a tree in ocean beach or put a Starbucks there it was then end of the world.. now they stack folks up or in aback yard….yet no complaints… strange
I agree with weather issue.., everybody complains near or at beach is unaffordable… yet homes are 1/2 the price 15 miles away…a number of immigrants never had a shot at a real education yet are hard working folks as we all know when we go to a restaurant…it is what it is.
Not new, born calif 62 years ago bought my first house for 39k in stockings when I was going to UOP…. what is shocking is how these fees have risen to an insane level… government greed run amock..if you are talking hoa fees, Mellio, and property….affordability is going down the toilet.
I agree with Jim.. new house less repair and possible better resale as less likely to go out of style 5-7 years down the road if you have to move plus better built earthquake and code wise… but at what cost… growing everyday… let’s add another real estate transaction tax… that is the solution….oops that might add to your costs … solution is reduce red tape, fees, and legal challenges for no real good reason..
Extremely tired of old white privileged people complaining about immigration and undocumented immigrants, all the while they make money off of them. I would really love to see white people pick fruit for $3/hour in 110 degree heat in central valley. Or maybe, you would like to mow your own lawns for $10/hour, or maybe clean your own houses for $9/hour. Large corporations are the biggest benefactors of immigrant/slave labor. And guess who runs most of corporate america and who is on the boards of these organizations, old white privileged people. So stop complaining and whining, and reminiscing about how things were 50 years ago. You sound like a dinosaur.
“Extremely tired of old white privileged people complaining about immigration and undocumented immigrants, all the while they make money off of them… So stop complaining and whining, and reminiscing about how things were 50 years ago. You sound like a dinosaur.”
Speaking of reminiscing, your extremely overgeneralized, racist rant describes the reasoning process of some very well known jack-booted dinosaurs from the 1930’s. Remember, commenting in a discussion thread is different from yelling at your television.
Yes I am for sure you are a champion of protest against injustices…you would be the first one to take a knee.