Real estate sales activity in Southern

from The Power Is Now Magazine | April, 2021

Black homeownership hurdles

The pandemic rush in Southern California’s real estate market continued this year with no signs of slowing down. Home prices and sales continued hiking this year as more homebuyers continue to compete for the few homes available for sale in the Southern California housing market. This demonstrates that despite the unique challenges presented by the recession experienced in 2020, many homebuyers merely delayed their purchases last year, rather than cancelling them altogether.

In January 2021, Southern California home prices and sales jumped by double digits compared to the same time last year. This can be greatly attributed to the rush by prospective buyers to take advantage of the plummeting mortgage rates. According to February 22 data released by DQNews, Southern California’s January median price surged by 13% from January 2020, to $599,500, while sales rose by 13.5%. According to the data, January 2021 marks the 5th consecutive month in which sales shot up by double digits, while it was the 6th consecutive month where the median price increased by a double digit.

Moreover, data by DQNews reveals pieces and sales rose in all six Southern California counties in January 2021 by the margins shown below:

Success Money

• In Los Angeles County, the median price rose 12.6% to $690,000, while sales climbed 14.3%. • In Orange County, the median price rose 6.7% to $799,000, while sales climbed 22%. • In Riverside County, the median price rose 17.1% to $455,364, while sales climbed 10.1%. • In San Bernardino County, the median price rose 11.8% to $402,500, while sales climbed 20.7%. • In San Diego County, the median price rose 9.4% to $640,000, while sales climbed 1.8%. • In Ventura County, the median price rose 11.2% to $655,000, while sales climbed 16%.

Experts have attributed several factors to the competitive market amid the pandemic. The first one is the plunge in the cost to borrow as the average rate on a 30-year fixed mortgage plummeted below 3% for the first time ever. This has encouraged more prospective home buyers to purchase homes using mortgage loans.

The increased competition in the Southern California market could also be due to the trend of more people spending more time at home thus realizing the need for a bigger space. Those who haven’t experienced a plunge in their incomes are taking the action to move to bigger spaces.

MOVING ON, WHAT DOES THE FUTURE LOOK LIKE?

Some experts predict that home prices will rise at a slower rate in 2021 than last year citing home values can only get so high. On the other hand, few market watchers are predicting a looming price drop citing low mortgage rates and hopes of a recovering economy. In terms of sales, homes sales activities are expected to increase in Southern California this year as more millennials are reaching their prime home-buying years as they look to settle down.