Home Sales Numbers and Prices in Southern California Make Significant Gains

In the month of July, the number of homes sold in Southern California rose by 23.5 percent,
marking a high unattained during the last eight years. The average home prices also recorded a
significant hike in July. A total of 25,149 homes and condos changed hands across the six
counties. La Jolla based market research agency, DataQuick noted that a year ago the number
was at 20,558 homes. In fact, the hike has been also immediate (17.6 %) in respect to the number
in June, which was at 21,608 properties.

The properties closed in on the long-term average denomination, settling at a meager 0.5 percent
below the July average number of 25,541. The average calculations involve data since 1988,
when DataQuick began its research. The pasts seven years did not see sales figures crossing the
long-term average.

July also noted a median price rise in property value by 25.8 percent. This year the median price
was $385,000, which was above the $306,000 from July 2012. This median value is also the
highest figure for any month from April 2008. DataQuick research indicates that the median
value rose at a month-by-month rate, indicating a robust property market.

The president of DataQuick, John Walsh released a statement saying, “July home sales figures
are very promising and we attribute this to the availability of a rising inventory. The hike in
mortgage rate a few months back may also prompted many buyers to look for new homes under
the apprehension of avoiding even higher mortgage rates.”

The Los Angeles County remained the hottest market recording the highest increase in prices.
The median value from last year was at $330,000, which rose to $425,000 this year, marking an
increase of 28.8 percent. The number of properties sold also increased by 17.8 percent to 8,353
properties as against 7,091 properties from last year.

San Bernadino County noted an increase of 24.2 percent in the median value. Last year it was
$165,000, while this year it was at $165,000. The number of sales rose by 20.8 percent,
recording 2,941 homes against the 2,434 properties from last year.

Riverside County noted a median increase of 25.9 percent. Last year, the value was at $210,000.
This year, it was at $265,000. Number of sales rose by 14 .9 percent. It was 3,546 homes in July
2012 and this year, it was at 4,076 homes.

Walsh noted that, “The market is in a re-balancing stage, as many underwater homeowners have
been able to sell their homes at a profit, or at least clear their existing debts. However, as the
supply and demand gap eases, home prices may not rise as steeply, as it did this year.”
The key reason for the rising values in July is traceable to the rising value of properties. About
one-fifth of the rising price is attributable to a shift in the market mix, reviewed DataQuick.