The real estate market is expected to do very well this year as mortgage rates remain at historic lows. One challenge to the housing industry is the lack of homes available for sale. Last week, move.com released a report showing that 2020 is beginning with the lowest available housing inventory in two years. The report explains:
Southern California home price hit a record-high $550,000 in December as buying jumped 22% in a year, CoreLogic/DQ News data indicates.
Cheaper mortgage rates, a shrinking supply of existing homes to choose from, plus a resilient economy got house hunters in a buying mood as 2019 ended. Here are 7 local housing trends within the report.
1. Regional sales: 19,337 residences — new and existing — sold in December in six SoCal counties. That’s up 22.1% in a year, the biggest jump in 37 months. But the region’s latest sales count still is 17% off the December average of 23,317 since 1988.
2. Price: SoCal’s median was $550,000 — up 7.2% over 12 months, the biggest jump in 22 months. That breaks the record of $549,000 set in July 2019.
3. Single-family houses: 12,873 sold in the six counties, up 20.1% in a year. The median selling price was $570,000 — an 8.6% increase over 12 months.
4. Condos: 4,133 sales across the region, up 27.2% over 12 months. Median? $470,000 — a 6.8% increase in a year.
5. Newly built: Local builders sold 2,331 new homes, up 25.3% in a year. Median? $578,750 — an 0.8% increase over 12 months.
6. Builder share: 12.1% of SoCal sales vs. 11.7% a year earlier. Between 1998 and 2018, new homes accounted for 13.4% of all homes purchased.
7. County by county: Sales rose in six SoCal counties in the past 12 months while prices rose in five.
Data provided by OC Housing Report and Keeping Current Matters.