Southern California home prices are at their highest in 4 years

By Sari R. Updated on 10/15/2012

Southern California is finally beginning to see a decline in inventory levels.  During September 2012, Southern California counties saw the median home price jump up to $315,000 as compared to $309,000 in August 2012 (1.9%).  From September 2011 to September 2012, there was a 12.5% increase in median home price. 

Analysts claim that the jump in price can be attributed to the small amount of homes for sale and demand as a result of home affordability.  Despite all this, prices are rising and sales are falling thanks to foreclosure resales hitting all-time lows.

A declining home supply and mortgage rates are currently doing two things for the Southern California region: encouraging new sales and reducing supply levels.  This means that middle-to-high end buyers are sweeping into the market to pick up the leftovers while capitalizing on historically low interest rates.  This shift is attributed to the types of homes selling, analysts say. 

Sale levels decreased with only 17,859 homes sold in San Diego, Ventura, San Bernardino, Orange, Los Angeles and Riverside counties.  Last month, there were 22,438 sales recorded.

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