Greater Los Angeles News
Home prices and sales up in Los Angeles20 Dec 2012 9:33 AM
Although it has been strengthening for several months, Los Angeles' housing market witnessed accelerated growth in October and November, The Los Angeles Times reports. The city saw many positive signs during those months, but the most prominent gains were witnessed in the volume of sales and median price.
In October, the number of Los Angeles homes sold rose 18 percent from September and more than a quarter from October 2011, the source reports. This amounted to more than 20,000 newly built and previously owned homes sold during the month - the highest total for October in five years.
"Watching the market rebalance itself is fascinating," said John Walsh, president of real estate analytics firm DataQuick. "In some categories and in some neighborhoods, demand outstrips supply, pushing up prices."
As Walsh points out, the high number of sales contributed to rising prices throughout the city. According to the National Association of Realtors (NAR), the median price of a home in the metro leapt 23 percent from October 2011 to October 2012.
"It is not unusual to see an October dip in price as we transition from the peak season to the low season," Leslie Appleton-Young, Chief Economist for the California Association of Realtors, told the Sierra Sun Times. "The year-over-year price gain, on the other hand, has been accelerating since early 2012, as sales of higher-priced homes continue to improve."
Unsurprisingly, high sales and improving property values have contributed to the city's diminishing supply of for-sale homes. According to the NAR, California's inventory dropped to 3.1 months in October 2012, down from 3.7 months in September and 5.5 months in October 2011.