October 08, 2020
The median home price in Southern California has recently soared to unprecedented heights.
In August of this year, Southern California’s median home price inflated to $600,000; 12.1% higher than the median of August 2019. This increase marked the third consecutive month in which the market’s median broke the record for the all-time high.
The culprits of Southern California’s recent rise in home prices continue to be coronavirus-related, as the pandemic has affected multiple factors contributing to price increase.
Interest rates are still extremely low, enticing prospective homebuyers to seize the current bargains available for mortgage rates. Additionally, the recent suburban home shift driven by more time spent at home has put more buyers on the market in search of houses over apartments. All this, combined with Southern California’s current shortage in home availability, has caused unprecedented amounts of bidding wars to take place over the few homes that are available. Zillow reports that Southern California experienced a 19% decrease of available homes in August of this year compared to August 2019, giving rise to the historic median highs the region has recently experienced.
Even with these skyrocketing prices, though, demand for homes has not diminished; sales still rose 2.4% from last year. This continuing success in the homesale industry reiterates the importance of housing in California, and indicates that the housing market remains in a good spot to brave the hardships associated with the pandemic.
Marissa Saldivar // CIRB Journalism Intern // email@example.com