Home Prices Break Record
Median home prices hit all-time records last month in Los Angeles and Orange Counties. In Los Angeles County, the median home price hit $560,500 and in Orange County, it was $795,000 -- both of which were all-time highs.
Previously, summer of 2007 marked the all-time high for the median home price of $550,000 in LA County, but that plunged as the housing bubble burst and the national economy crashed. The previous record in Orange County was $775,424.
The report released this week by CoreLogic found that the county median price in May was 6.8% higher than a year earlier, with a 4.6% jump in sales during the same time period.
If you adjust for inflation, May's median price is about 11% below the 2007 high, according to the Los Angeles Times.
Many experts say that the current prices seem more sustainable than they were a decade ago. The inventory of homes for sale remains extremely low and demand is high, pushing prices higher.
“Stubbornly low supply levels will continue to propel prices higher,” said CAR Chief Economist Leslie Appleton-Young. “When combined with imminently higher interest rates, (that) will worsen an already dismal affordability situation in the housing market.”
Locally, many sellers are experiencing multiple offers on properties, especially if the homes are attractive, nicely located, and well priced.
Here's where median home prices were in several local communities as of May 2017:
- Long Beach - $556,500
- Lakewood - $553,500
- Signal Hill - $729,500
- Bellflower - $486,500
- Seal Beach - $1,124,000
- Los Alamitos - $848,000
- Cypress - $666,500
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