Today’s Los Angeles Times reports that the pandemic fueled housing boom continued in March with double digit increases in median home prices for the eighth consecutive month in the six county Southern California region. For the region, the March median home price increased to a record $630,000 (up 14.5% year-over-year), according to data released from real estate firm DQNews. Total March home sales increased 32.2% year-over-year. Factors driving the boom: lower mortgage rates, people looking for more space and millennials entering their early thirties, the age when many people become first time home buyers.

County by county price and sales increase are as follows:

·         Los Angeles County’s March median home price rose to $750,000 (up 17.2% year-over-year), while sales were up 33.9% year-over-year;

·         Orange County’s March median home price rose to $835,000 (up 10.6% year-over-year), while sales were up 38.5% year-over-year;

·         Riverside County’s March median home price rose to $476,750 (up 17.9% year-over-year), while sales were up 37.5% year-over-year;

·         San Bernardino County’s March median home price rose to $429,500 (up 18.3% year-over-year), while sales were up 29.3% year-over-year

·         San Diego County’s March median home price rose to $680,000 (up 15.3% year-over-year), while sales were up 22.4% year-over-year;

·         Ventura County’s March median home price rose to $658,000 (up 12.5% year-over-year), while sales were up 24.2% year-over-year; compared with

·         The Coachella Valley’s March median detached home price rose to $549,000 (up 27.3% year-over-year) and the March median attached home price rose to $345,000 (up 15.4% year-over-year), while total home sales were up 39% year-over-year.

Will the price gains continue? Richard Green, director of the USC Lusk Center for Real Estate doesn’t see people’s incomes allowing them to pay much more. On the other hand, analysts at John Burns Real Estate Consulting predict that low inventory and an influx of investors will drive Southern California home prices up by double digits by December. By December 2022, they predict prices will have increased by an additional 6% or so.

To read Andrew Khouri’s Los Angeles Times article, courtesy of the Los Angeles Time, please visit: https://www.latimes.com/business/story/2021-04-21/southern-california-home-prices-continue-wild-ride-in-march

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