AT the end of September 2021, the Southern California housing market continued to increase in comparison to the prior year (September 2020)*.
Los Angeles County showed an increase of 8.7% with a median sales price of $889,000 and an average sales price of $1.3m for single family homes. Orange County had an increase of 17.3% with a median sales price of $1.1M and average sales price of $1.4M. Riverside County had an increase of 18.6% with a median of $555,000 and an average price of $635,000. San Bernardino County had an increase of 15.5%, a median sales price of $467,000, and an average sales price of $635,000.
Average days on market (DOM). Homes for sale in LA County were listed on the market an average of 21 days before closing. Orange County’s DOM was 19 days, Riverside County’s DOM was 20 days, and San Bernardino County’s DOM was 21 days.
Is there a housing bubble? Although the market continues to increase year over year, keep in mind that real estate is hyperlocal, meaning that it depends on your local area market, the local zip code, and neighborhood. Overall, the LA metropolitan and Southern California do not indicate a housing bubble. It may seem that way, but there continues to be more buyers than inventory available. The main factors currently driving up real estate prices 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 but your home’s value has increased, and you’re able to sell and reinvest the profit for a larger home or other investment, then for most people it would make sense to sell.
Location, location, location. The most important factor in real estate, whether you’re deciding to sell or buy is the location. Property values can differ greatly for similar properties but have a different zip code, school district, neighborhood, or planned development. Location also matters during a down market. During a down market, higher priced homes in highly prized neighborhoods won’t decrease in value as significantly as lower priced homes in less desirable areas and neighborhoods. The bottom line is that market demand dictates the real estate market and location is the major factor. If you’re waiting for a down market to purchase a property, keep in mind that not all areas will experience a down market. Most importantly, comparing a similar size and type of home in a different city or state is like comparing apples to oranges.
What is your goal?
When you’re planning to buy or sell your home, always ask yourself— what is your goal? 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.
(*Figures are based on CRMLS data, as of Oct 2021.)
Life’s Short, Love Where You Live.
Call / Text 213-608-5837 for a complimentary 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