The housing market in Southern California increased in October due to the rise of home sales as more buyers look for more expensive homes. Sales in the region increased 18 percent from the previous month and higher 25.2 percent from the same month last year. Around 21,075 newly constructed and previously owned homes were sold throughout the six-county region in October.
The average sales price for a home in October was the same as in the previous month. The median price increased 16.7 percent compared to October of 2011. The market rebalanced itself according to DataQuick President John Walsh. DataQuick is a real estate company.
Southern California’s lowest cost areas posted the weakest sales volumes. This was often the most starved for inventory according to real estate agents. The number of homes sold below $200,000 in the region decreased 11.2 percent. Sales in these markets have been slowed due to the drop in foreclosures while the high demand pushed up the prices.
Since the beginning of the mortgage collapse, repossessed homes have been considered the discount aisle of the real estate sector. Now investors and first-time home buyers are competing for affordable properties from 16.6 percent last month and 32.8 percent in October of 2011. Foreclosure resales got its highest level of 56.7 percent in February of 2009.
California homes are becoming less affordable as property values increase in the state. According to the California Association of Realtors, 49 percent of homebuyers in the third quarter could afford an average priced house in the state. That was down from 51 percent in the previous quarter.
The group estimated that homebuyers had to earn at least $65,810 annually to qualify for the purchase of an average priced house in California. The group added that the average priced home would be at $339,860 at the end of the third quarter.