The median price of a home in Southern California jumped 10 percent in February from a year earlier and sales edged up slightly for the 20th consecutive month, a market tracker said Tuesday.
The median price in the six-county region rose last month to $275,000 from $250,000 a year earlier, said San Diego-based MDA DataQuick. February’s 10percent price increase is the largest year-over-year gain since an 11percent increase in March 2006. Sales increased 0.8percent to 15,359 properties from 15,231 in February 2009, the company said.
In Los Angeles County, the median price increased 5percent to $315,000 from $299,000 a year ago. Sales increased 10percent to 5,034 properties from 4,590 in February 2009.
DataQuick analyst Andrew Le-Page said the January and February numbers are rarely a clear indicator of how the market will behave throughout the year. “It’s still kind of a mish-mash,” LePage said. “The January and February numbers are always more difficult to interpret and not predictive at all.”
For example, sales increased overall from a year earlier but declined in three of the region’s six counties.
Inventory is tight in many markets across the state, typically indicative of a sellers’ market.
This time, however, buyers are snapping up the flood of foreclosed properties resulting from the recession.
Lower-priced properties still dominated sales in February.
“It’s possible the stars won’t line up this way again for many years. With prices and mortgage interest rates this low, the cost of ownership is about as low as we’ve seen it in decades,” John Walsh, DataQuick president, said in a statement.
DataQuick’s report found that:
Foreclosed properties accounted for 42percent of the resale market last month, unchanged from January and down from 56.7 percent a year ago, which was a record high.
Government-insured FHA loans, a popular choice among first-time buyers, accounted for 38.5percent of all home purchase loans in February.
Flipped homes – those bought and resold within a three-week to six-month period – were 3.4percent last month, up from 2percent a year ago.
Interested or buying or selling property in Palm Springs or the Coachella Valley area? Contact Patrick-Stewart Properties today.