Posted on 06/15/2005 12:48:38 PM PDT by BurbankKarl
Southern California home prices rocketed to new highs again last month, but the rate of appreciation appeared to have flattened out, data released today.
The median price paid for a Southern California home rose 15.2% on a year-over-year basis to $456,000 in May, setting a record. Yet, the pace of the increase was on par with the rate of change in April, when the median rose 15% to $445,000.
Pushing prices higher has been a relentless stream of eager buyers. Home sales in May were nearly as strong as a year ago when they set a record. Last month, a total of 30,886 new and resale homes changed hands in the six-county region. That was down just 0.9% from a year ago.
"There just aren't enough homes for sale to meet demand," said John Karevoll, chief analyst for DataQuick Information Systems, which reports regional housing information each month.
Nonetheless, Southern California's housing market is slowing from its peak, which looks to have been reached a year ago when the year-over-year price increase soared nearly 27%.
In many ways, the Southland is fast becoming a tale of two housing markets.
Prices in the Inland Empire are still accelerating at a red-hot pace of more than 25% year over year, while the rest of the region is showing definite signs of chilling out.
For the first time in almost five years, Orange County's median price dipped to a gain of less than 10% in May, and San Diego's year-over-year increase was 7.5%, the slowest rate of change in five years. Los Angeles prices, too, are losing speed, rising 16.5% last month to $459,000, the slowest rate of appreciation in three years.
Indeed, Southern California's housing market is no longer on the same fast track.
"The region now is starting to behave differently,"
(Excerpt) Read more at latimes.com ...
The real risk is when you buy in an overheated market and get boned when the market contracts even 5% which is $25K on a $500K house. My neighborhood has just experienced one of those albeit after a 30% year over year gain.
(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
Not according to the aritcle. The bubble is just not getting bigger as fast.
Down here in Palm Springs area, homes sales have not slowed. Three house in our neighborhood were on the market less than 3 weeks. All went for well over what they sold for two years ago.
I understand one of them was bought by a couple that sold their 761 Sq. Ft. in Ventura for $819,000.
Your home is in the inland empire and you only have a 20 minute ride to the beach???
Traffic must changed since I lived there....unless you have a lear jet.
Compton isn't in the Inland Empire. It's in L.A.
We do not live in a huge house but our master bedroom is bigger than 700 square feet. (Craftsman style house with a full 2d floor in the Midwest.) I would think the property taxes would eat those people alive.
We do not live in a huge house but our master bedroom is bigger than 700 square feet. (Craftsman style house with a full 2d floor in the Midwest.) I would think the property taxes would eat those people alive.
I was talking about a house in Compton. No my drive is about 45 minutes to the beach with no traffic, 35-40 minutes from my door to Staples Center.
I had overhead this from someone I've known for years who's lived in Glen Cove for around 10 years. I haven't noticed the homes sales in my neighborhood, which is a little more upscale than Glen Cove. Homes here have been selling in days, with multiples bids. I'll have to snoop around and see what's happening. I haven't really paid attention, since we have no need nor no plans to leave.
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