Record High Median Home Prices In Los Angeles and Orange County

LOS ANGELES - April 26, 2018 - PRLog -- The median home price in the 6 county (Los Angeles, Orange County, San Bernardino, Riverside, San Diego, Ventura) region of Southern California increased 8.4% in March 2018 from a year earlier. This is a new all-time high for residential real estate prices in Southern California. The $519,000 median home price in March 2018 beat the record of $505,000 set in July 2007. Adjusting for inflation, this new high is 13.4% below the high reached in 2007.

There are significant differences between 2007 and 2018. The 2007 bubble was significantly fueled by subprime mortgage loans and Adjustable Rate Mortgages (ARMs) in order to finance the transactions. The 2018 increase is fueled by a stronger economy, slower construction rates, and a lack of inventory. Despite an increase in construction after the recession, home building hasn't returned to historically normal levels. This nationwide problem is blamed on a variety of factors, including a number of builders that went bankrupt during the financial crisis. The problem in California is exacerbated by resistance of local residents to new construction projects citing an increase in traffic and changes in the character of the neighborhood.

Home Prices Up Throughout Southern California:

Los Angeles County: Median price rose 6.6% to $585,000.
Orange County: Median price rose 8.7% to $725,000.
Riverside County: Median price rose 7.1% to $375,000.
San Bernardino County: Median price rose 7.5% to $328,000.
San Diego County: Median price rose 6.8% to $550,000.
Ventura County: Median price rose 5.6% to $565,000.

Collins and Associates
http://www.dcnassoc.com/