Upward Surge in SoCal’s Median Home Price in June Sets Record

Team McGuire are realtors in the South Bay, specializing in off-market properties. They have a real knack for locating desirable properties or “hidden gems” for their clients. An off-market property is where there’s a motivated seller but the property has not yet been broadcast on the Multiple Listing Service or MLS.  We’re also a Manhattan Beach, Hermosa Beach and Redondo Beach Strand specialist who can help you sell your home successfully as we have intimate local knowledge of the South Bay and strive to help you get the maximum value for your home.

The LA Times recently posted an article online featuring great news about the housing recovery as it reported that median home prices in Southern California surged a stunning 28 percent in June compared to a year earlier, to outpace any month during the housing bubble of the past decade. The gain puts the median home price at $385,000, up from $300,000 in June of 2012.

This home price rebound makes the future for Southern California’s real estate market look bright indeed and it could mark the beginning of the recovery. Stuart Gabriel, Director of UCLA’s Ziman Center for Real Estate said that he believes the mismatch of supply and demand underlies the recent home price gain. However, he warns buyers not to expect this to continue for long as the increase in home prices in Southern California will most likely stop during the fall months.

The LA Times article points out that there’s a big demand for homes in Southern California right now. The recent rise in interest rates has undoubtedly prompted more buyers to close deals as they fear rates will increase more. Investor demand for real estate in the area has waned slightly but still remains strong and particularly amongst those smaller investors who typically buy just a few homes. There are also many people looking for homes today who lost their homes a few years ago and who are now reentering the market as they can qualify for mortgages. To read the LA Times article in its entirety, click here.

What does this mean for you?

So what does this remarkable rise in home prices signify for Southern California homebuyers and sellers? In short, supply and demand will determine what happens over the next few months. If inventory is low, it means more buyers will be bidding on single homes. So if you’re a seller, it’s very important to stage your home well and to set the price appropriately. If you’re interested in buying a home, now’s a good time to jump into the market as 2013 is shaping up to be a great time to acquire new Southern California real estate.

Team McGuire Real Estate is a Top Producing real estate team who takes pride in working closely with our clients to ensure that they’re aware of the critical real estate market data and news so they can make the most informed decisions. If you’re located in the South Bay or are interested in speaking to an off market specialist in the South Bay, please contact Team McGuire for a free market analysis or for any of your real estate needs.