As September came to a close, researchers noticed that the surge in Southern California real estate–although as booming as ever–has resulted in the highest home prices in 10 years.
The Housing Surge
In a recent study conducted by CoreLogic, research showed that the median price for homes within the 6 county region of California skyrocketed to $505,000, nearly 10% higher than the recorded amount from the previous year. This current median price is similar to the pricing level in 2007 right before the US experienced one of the largest housing market crashes in history. Though $505,000 is the median price of homes within Southern California, there are many areas–and homes–that have surpassed this price point. For example, in Los Angeles County, the September median for housing prices hit $575,000–a 9.5% surge from the year before and a $25,000 increase from 2007. Even Orange County hit a record-breaking surge; in September, the median price of homes for sale was $710,000 which came out to be an 11% increase from the year before and a $65,000 spike from 2007’s records.
Fortunately, many economists view this surge not as an indication of the next housing bubble burst that can bring down the economy in its wake, but as something very different. Many economists believe that the surge in housing prices is actually a good thing; it’s the result of our improving economy and low mortgage rates.