KHTS Radio Santa Clarita Radio – Santa Clarita News
As the supply of available homes in southern California declines, home prices – including in the Santa Clarita Valley– continue to rise by percentages in the double-digits.
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In a report released by the California Association of Realtors (C.A.R.) Tuesday, the median home prices for California were reported to be steadily increasing across the state.
While sales numbers for homes in Northern California have continued to increase, the Southern California market continued its downward trend with a year-over-year decline of 6.4 percent. Sales were down the most in San Diego and Los Angeles counties, which decreased by 10.4 percent and 7.6 percent, respectively, according to the report.
“The housing market performed solidly throughout the state in March, especially in the San Francisco Bay Area, which led the way with six of nine counties posting sales increases and the median price surging by double-digits in seven of nine counties,” said Steve White, president of C.A.R. “On the other hand, sales in the Southern California region have cooled for the past five months, even in the more affordable Riverside and San Bernardino areas.”
Home prices maintained a strong growth across California, with the statewide median price jumping 8.1 percent in March to reach $564,830, up from a revised $522,440 in February and rising 8.9 percent compared to March of last year.
Los Angeles prices increased the most at 13.6 percent and continued to surge by double-digits for the fourth straight month. San Diego and Orange County followed with a 9.5 percent and 8.5 percent annual increase, respectively, marking new record high median prices for the two counties, according to C.A.R. officials.
The high demand for California homes, coupled with the low number of listings, has resulted in the price increase in southern California, according to Leslie Appleton-Young, C.A.R. Senior Vice President and Chief Economist.
“While the decline in the number of active listings has slowed dramatically since the beginning of the year, inventory still remains tight, which is driving home prices higher,” said Appleton-Young. “Housing demand remains strong and competition is fierce, especially in San Francisco, San Mateo and Santa Clara, where home prices are being pushed to record levels and buyers are paying as much as 17 percent over asking price in some markets.”
The California Association of Realtors is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate.
To read the full C.A.R. report, click here.
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The shortage of supply and increased home prices have unintended consequences. Buyers, nearly desperate, are caught up in the race to buy a home while interest rates are low. Their their personal needs often weigh heavily, and the competitive nature of today’s real estate market intensifies with little confidence the market will improve. As buyers reach much deeper into their pockets to win and successfully buy a home they inadvertently establish new pricing water marks causing the entire market to experience profound and troubling inflation. The severity in the bay area is very different than many other or most other areas throughout the nation.
As a result, many people become frustrated, often adopting a feeling of hopelessness in the pursuit of housing, and seriously consider the option of moving away from this difficult real estate market. They look to areas that offer the promise of affordable housing, a perceived improvement and more satisfying living environment, and a perceived less stressful life style more suitable for young and old families.
The solution to avoid having to move away may be in part to seek professional advice from competent local realtors, develop a better than average understanding of how this market works, study the competition you will face, and effectively negotiate for success.