Southern California Home Sales - "Southern California home prices increased at a slower pace in April as inventories improved and investor purchases waned, a research firm said Tuesday. " ...
Southern California Home Sales:
Price Rise Slows As Inventory Grows
SAN ANSELMO, CA - JULY 02: A sale pending sign is posted in front of a home for sale on July 2, 2013 in San Anselmo, California. Southern California home prices increased at a slower pace in April as inventories improved and investor purchases waned, a research firm said Tuesday. (Photo: Justin Sullivan/Getty Images)The "Investor Frenzy" Calms A Bit
In looking at the most recent reports of last month's market activity here in the Southern California Home Sales market, we find that the ongoing rise in prices slowed a bit as inventories grew. We can also see that the "frenzy" of investor purchases seems to be slowing a bit as well.
The Southern California area is showing a marked increase in the number of properties available when compared with last year. This is a reflection of the rising values, which have made it possible for some who wanted to sell but couldn't ... because they were still "upside down" in their property values ... to actually enter the market this year. If the inventory continues to increase as we move into summer, that would make it a lot easier for the market to reach "average" activity levels ... which we haven't really seen in several years now.
Here's an article from the Associated Press, as it appears on the KPCC - Southern California Public Radio website:
The median sales price for new and existing single-family homes and condominiums was $404,000, up 1 percent from $400,000 in March and up 13.2 percent from $357,000 in April 2013, DataQuick said. It was the 25th straight month that the median sales price rose from a year earlier but the lowest annual percentage increase since September 2012. ...
A "calm" market is a more stable market. We've been watching activity for a long time now that is more common to a "volitile" market than a stable one. However, market activity always fluctuates in "waves". Periods of volatility are usually generated as markets search for a position of stability. If we can see a continuation of the increase in the size of the market inventory, and a bit of a pull-back in investor activity, this would encourage a slow-down of rising prices, a bit more welcome competition, and a more attractive market for the "average" resident home buyer. With that type of situation in place, we could be looking at a summer that just might return the Southern California real estate market to a more "traditional" footing.
