Skip to comments.There’s a pandemic, but Southern California home prices are at record levels
Posted on 09/23/2020 2:18:07 PM PDT by BenLurkin
The six-county regions median price reached $600,000 in August, up 12.1% from a year earlier, according to data released Wednesday by DQNews.
That was the largest percentage increase since 2014 and the third consecutive month during which prices set a new all-time high. Sales rose 2.4% from a year earlier.
The price leap may seem unlikely amid double-digit unemployment, but analysts say the trend reflects the uneven effect of the coronavirus and its economic fallout.
Compared with low-wage workers, people who tend to have the financial ability to buy homes have been less likely to lose their jobs, and in some ways, their ability to purchase a house has only expanded.
Interest rates have plunged, with the average rate on a 30-year fixed-rate mortgage now below 3%. And many typical entertainment and recreational activities are still closed or operating at reduced capacity, leading some households to save more at the very time they realize they could use much more space.
Part of the sharp double-digit increase in the median is simply its definition.
The median is the point at which half the homes sold for more and half for less and thus reflects not only actual increases in value but also the types of homes selling at any given moment.
Because the economic downturn has fallen unevenly on different segments of society, theres been a sales shift toward the top end of the market, said Jordan Levine, deputy chief economist at the California Assn. of Realtors.
(Excerpt) Read more at latimes.com ...
Southern California real estate has been a great investment for those home owners. I expect that homes will continue to increase in value.
Low interest rates are driving monthly housing payments down, prices higher, until equilibrium
California is going Venezuela
Cost of living, taxes, ugly business climate, regulation, over populated....
Dunno, what profession was that?
I’ve lived here over 70 years ...huge farming fa milk altho I spent my time in the Stockmarket.
Three of my neighbors sold their homes in just the last fee months...and we’re ib lockdown: No open. house, no lookie loos.
with so much of the Californication home buying coming from Communist China (and now some venture capital firms seeking more rental properties),
it doesn’t require genius to foresee the future of the market once that PRC buying cools down (for any of several likely reasons)
Vancouver BC and Seattle had that Chinese wave too. Home prices to the moon. Unsustainable
The greatest business in California is multi generational wealth transfer. With most of that having been railroad, farming, converted to real estate development. Lots of Californias population born wealthy, no need to work.
Plenty of idiots out there hoping out hope that the insane left will stop taxing everything to death I guess.
I was told that the spike in prices is being caused by people fleeing the city and moving into surrounding suburban areas.
I thought part of the housing increase in certain areas had to do with people escaping the liberal areas due to being imprisoned in their homes and riots.
Mine is on the market right now.
The Communist Chinese buying of California houses ended for awhile in 1989 when a large Asian newspaper published a large expose type article what a ripoff prices there were, when buyers could get 4 houses elsewhere in USA for the same money. California prices took a steep nose-dive and stayed somewhat depressed for several years (later recovered when the Chinese started buying again, and other factors).
Any market that is so dependent upon one source of demand...however... is “asking for a big fall.”
And the overall cycle is due now anyway, so..... beware is about all we can say. Beware.
Vancouver invited the Chinese over when Hong Kong closed.
But Canada did what we should consider doing; they took in families and people who could contribute the most. People from Hong Kong were checked for monetary assets they were bringing in.
I was just thinking that i wish my grandma owned a house in south Cali..
Yes, I am from several generations of a large farming family in CA. I left and worked as a professional whose field does nit exist outside of large metropolitan areas.
As far as I’m concerned, the suburbs offer nothing. In the city I can work in a high paying job, I have lots of museums, live theater, beaches, mountains, close to the best weather in the country and fabulous restaurants. I’ve enjoyed that for 70 years...why leave?
Yes, politics [politicians] suck.
Where about in California do you live? Have you lived here long?
Have you been familiar with the areas that the Chinese took over and what they have done? Do you remember the population they drove out [Mexicans] or that for the most part they have been glowing assets and have improved their communities?
Put my parents’ house on the market the end of March. Fixed upper. Got 15 offers and were under contract in a week. Sold for almost 10% above list. Closed first week in May.
Terrorism and shootouts?
That’s been going on in my los Angeles neighborhood. I just hope it remains this was.
I FEAR for what this crazy lockdown is doing to the economy. With Trump at the helm....we were BOOMING. But Fauci and friends appear to be causing chaos.
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