Sales Volume in Los Angeles County is Down, Prices Continue Upward in 2016

Long Beach, a great city to live in.

The median price of an existing, single-family detached Los Angeles County home rose in March to $545,000 from $535,250 in February. The March 2015 median price was $510,000.  All data comes from Realist. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

But while prices are going up in the County as a whole, sales volume has decreased dramatically:
the number of single family homes sold in March 2016 was 1,853; in February, 2016 it was 3,924; in March 2015 homes sold was 6,380 and in February, 2015 it was 5,109.  This is a sales volume decrease of 50% and greater compared to the same time last year.

The 2016 sales volume for Orange County is a similar picture, but with lower numbers: total SFR sales are 1432 and 1407 for February and January, respectively.

Less inventory means much more competition for buyers in Long Beach, especially in the lower prices range under $500,000 which sell in 40-60 days on average (or less), while properties in the $1,000,000-plus range are on the market for well over 90 days on average.

While housing prices continue upward, housing affordability in California is increasingly a topic of concern.  Another indication of housing prices is that investors are buying fewer single family and multi-family properties.  California Association of Realtors's 2016 California Investor Survey found 10 percent of real estate investors purchased more of the other types of properties, such as commercial, land, and mobile homes, in the past year compared to previous years.

Lack of inventory, especially in Southern California, can be an issue for sellers who want to move on--but for those moving out of the area, or for those who have all cash for a purchase, the ability to move on may be much easier, and would bring more housing inventory onto the local market for sale. From that standpoint, it's a good time to sell while interest rates are still so low.  Please contact me for a customized report on home value for your property!