Southern California home prices hit an all-time high this April as the hot seller’s market got even hotter. According to statistics from DQNews, median home price increased 20.2% year over year to a record $655,000, across Southern California including LA, Orange, Riverside, San Bernardino, San Diego, and Ventura Counties. Becky Beavers of DQNews says the 20.2% jump is the first year-over-year increase of more than 20% since December 2013
This marks the ninth straight month in a row of double-digit home price increases. What’s driving this off-the-charts growth? It’s a combination of historically low mortgage rates, an increased desire for space since we’ve all been quarantining at home for the past year, and Millennials finally hitting homebuying age ready to dive into the market in their peak income-earning years. Bidding wars are extremely common across the Southern California housing market as tons of buyers compete for limited inventory, helping to drive up median prices.
Looking at sales and prices for April 2021, both rose in all counties across Southern California:
- Los Angeles County
- Median Price: Up 19% to $750,000
- Sales: Up 101%
- Orange County
- Median Price: Up 15.6% to $872,500
- Sales: Up 97.9%
- Riverside County
- Median Price: Up 19.7% to $489,750
- Sales Up 80.8%
- San Bernardino County
- Median Price: Up 23.7% to $436,500
- Sales: Up 66.9%
- San Diego County
- Median Price: Up 17.8% to $700,000
- Sales: Up 74.1%
Advice for Homeowners and Sellers
This is a great time to sell your home because you are likely to get several offers and sell for as much money as possible. You are likely to pay little to no closing costs, no repairs, and cash out big. However, if you plan to buy after you sell – it’s going to be tough. Contingent offers are not getting accepting in our extreme seller’s market, so you will either have to sell and then rent while you search for your next home, or negotiate with your buyer for a rent-back period in your sales contract so that you have extra time to do your own house hunting once your transaction is done without having to vacate immediately.
If you’re working with an experienced FirstTeam agent, they will be able to help you find a home sales strategy that works for you and your unique goals, timeline, and needs.
Advice for Buyers
If you haven’t started your home search yet, do it now. It may take several months and dozens of offers to secure your next home, so persistence and strategy are key. Work with a buyer’s agent to help protect your interests while also being as aggressive as possible with your home offers. You never want to purchase a home you can’t afford, but you will have to come in strong if you’re actually going to get your offer accepted in today’s tight seller’s market. Inventory is extremely limited so when the right house does come along, you need to be ready to move on it ASAP! Remember, Southern California home prices are at an all-time high, but with ultra-low rates as well, this is still an advantageous time to buy. The price of your next home might be more than you’re expecting, but the actual monthly cost of your mortgage will be more affordable if you secure a lower rate.
