Southern California Home Prices Drop for the First Time in Nine Years

Over the past few years, the combination of supply and demand issues have had a significant impact on home prices throughout Southern California.  In fact, the median home price has risen steadily since 2012. This may change in coming months according to a CoreLogic report released in April.

CoreLogic’s data found the median home price in Southern California dropped 0.1% in March 2019 from the previous year. Southern California home prices currently sit $18,500 less than what they were during the last June’s peak. While this doesn’t sound like much, this price dip may indicate a sustained decline in coming months.

But it is important to note that the recent decrease doesn’t apply to all areas of Southern California. Although gains were smaller than in the past, home prices in Los Angeles County, San Diego County, and the Inland Empire grew over the past year. The median home price only dropped in Orange County, which has some of the highest home prices in Southern California.  While Orange County home prices might continue to dip slightly over the next few months, it isn’t likely this trend will last.

Healthy Housing Market in Southern California

Low mortgage rates and a solid economy have made buying a home or investment property more attainable for potential home buyers. As a result, we are still experiencing steady sales.

Although luxury homes are sitting longer on the market, homes under $750,000 are selling fast. To attract buyers, some sellers have begun adjusted prices or increased concessions to make a sale. According to Zillow, 15.5% of listings in Los Angeles and Orange County experienced price cuts in March. Only 11.6% of available Orange County homes experienced price cuts in March of last year. In the Inland Empire, 15.9% of sellers reduced their asking prices in March, compared to 13.6% last year.

This is the trend we are watching closely.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.