Ending the month of October 2021, the Southern California housing market continued to appreciate in comparison to the prior year (Oct 2020)*.
Los Angeles County showed an increase of 6.7% with a median sales price of $880,000 and an average sales price of $1,315,782 (+11.6%) for single-family homes. Orange County had an increase of 12.4% with a median sales price of $1,000,000 and an average sales price of $1,359,855 (+22.7%). Riverside County had an increase of 21% with a median of $563,500 and an average sales price of $648,306 (18.9%). San Bernardino County had an increase of 18.8% with a median sales price of $475,000, and an average sales price of $527,652 (+16.6%).
Average days on market (DOM). Days on market continued to be strong. Homes for sale in LA County were listed on the market an average of 22 days before closing. Orange County had an average of 20 DOM, Riverside County had an average of 22 DOM, and San Bernardino County had an average of 22 DOM.
Why does the market keep going up? Although the market continues to increase, keep in mind that real estate is hyperlocal, and demand depends on your local area market, the local zip code, and neighborhood. The main factors currently driving up real estate prices in Southern California are: 1) shortage of homes for sale, and 2) low finance rates.
Is it still a good time to buy or sell? Yes, both. It’s a good time to buy because of low mortgage rates. If you are currently renting but you can purchase a home and have a similar monthly debt payment, then for most people it would make sense to purchase. If you’re currently a homeowner and your home’s value has increased, then you might want to look at the option of selling to reinvest the profit for a larger home or downsize and pocket the net profit.
Location, location, location. Why is location so important?
The comment I hear the most is “I can buy a home outside of California that’s less expensive.” That is true to a certain degree. But also realize that the cost of any product, and especially real estate, is based on market demand.
We have what we termed in California the “weather tax.” The closer you live to the coastal areas with the most ideal weather all year round, expect to pay the higher cost of real estate and higher cost of living. Additionally, California has the largest economy in the U.S. made up of a diverse and broad range of industries providing employment and business opportunities.
There are areas within the state of California that have homes priced like what you find out of state, however, the question to ask yourself is— do you really want to live and work there? What’s the trade off? You can buy an inexpensive home in the Midwest, or even in the High Desert, Central Valley, and rural areas of California, however, if doesn’t meet your needs for your career, business, your children’s schools, or personal lifestyle, then an inexpensive priced home can be costly in terms of loss in opportunities for you and your family.
What is your goal?
When you’re planning to buy or sell your home, always ask yourself— what is your goal? Do you want to invest in real estate for additional income and long-term wealth? Is it time to stop paying your landlord and invest in your own home? Is it time to sell and purchase a larger home? Do you need to downsize? Is it time to move on? Is it time to finally retire? There are things in life that can’t be bought or replenished, and that’s time. Time is of the essence whether you’re looking to buy or sell as an investor, or as a homeowner.
(*Figures are based on CRMLS data, as of Nov 2021.)
Life’s Short, Love Where You Live.
Call / Text 213-608-5837 for a complimentary initial consultation, property value assessment, or questions for Selling, Buying, or Investing in real estate. Connect with me @jasonarealtor on Facebook, Instagram, and LinkedIn.
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JASON AGCAOILI, REALTOR | Ca DRE #01947185
JASONAREALTOR.com | HomeSmart Realty Group. Your Realtor for the Los Angeles Metropolitan, South Bay, Beach Cities, and Long Beach. | Member – California Association of Realtors and the South Bay Association of Realtors | Member – Coalition of Filipino American Chambers of Commerce