Home Latest News Southern California home prices jump $1 every 2 minutes – Press Enterprise

Southern California home prices jump $1 every 2 minutes – Press Enterprise

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bubble clock“Dig into trends that may indicate further economic and/or housing market problems.

Discussion: Southern California pandemic-fueled home prices are rising at a pace not seen since the early days of real estate’s rebound from the Great Recession.

Source: DQNews/CoreLogic Chronicles of Reliable Spreadsheet Analysis of Homebuying Data, April vs. 1988.

Trend

The average sale price for the six-county Southern California area was a record $655,000 in April, up from $60,000 in just three months.

This means that the price of the typical home here is increasing by $1 every 2 minutes during the February-to-April period.

Yes, it’s a prime buying season, so prices tend to jump – an average of 5% over the three months ending 1988 in April. This year the bump was double at 10%!

How rare is this? Only 10 times in 34 years have we seen a great price.

And when was the last time we saw a sharp surge?

Well, there was an 11% jump in the pandemic phase in August – so COVID-19 caused the two biggest spikes in 34 years. But before the coronavirus was a household name, the last time it saw a big increase was in June 2013.

amputation

Let’s consider the three-month gains at the county level through April, ranked by the size of the price jump.

San Diego: Record $700,000 average, up $60,000 in three months. That 9.4% gain has been on the top 11 times since ’88.

Orange: Record $872,750 average, up $73,750 in three months. The 9.2% gain has topped 10 times since ’88.

Angel: A record-tying 8.7% gain to $60,000, averaging $750,000 in three months, the highest it has been since ’88.

Ventura: Record $705,000 average, up to $55,000 in three months. 8.5% gain tops 36 times since ’88.

San Bernardino: Record $436,500 average, up $34,000 in three months. That 8.4% gain tops it 23 times since ’88.

Riverside: Record $489,750 average, up $33,000 in three months. That 7.2% gain is more than 25 times since ’88.

how bubbly?

On a scale from zero bubbles (no bubbles here) to five bubbles (five-alarm alert)… Five Bubbles!

Southern California housing was not affordable when 2021 began.

And how many people got 10% salary increase from January? Hence, there is a further loss in affordability in the first quarter of the year.

Don’t forget, the required downpayment also increased by 10%.

In addition, mortgage rates have risen from January’s all-time lows, cutting a home hunter’s purchasing power by nearly 4%.

Jonathan Lancer is a business columnist for the Southern California Newsgroup. he can be reached here jlansner@scng.com

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of knews.uk and knews.uk does not assume any responsibility or liability for the same.

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