According to CoreLogic real estate agency and my observations, the average price of a home in Southern California this March was $ 518,500, which is 0.1% less compared to $ 519 thousand.
Such a market phenomenon as a decline in property prices was recorded in California for the first time in the last 7 years.
At the same time, sales volumes continued to decrease across all segments and districts (this has been happening for the last 8 months in a row) – in March they decreased by 14.1%. Such a situation can lead to a fall in prices in a tailspin, and then many buyers who have been postponing their purchase for a long time will be able to purchase housing.
True, analysts are not inclined to believe in a scenario of a sharp decline in real estate prices in the state with steady economic growth and a record low unemployment rate (4.3%).
“This March slight decline reflects both a flattening of housing prices in recent months and a shift in the structure of the market where sales in low-price segments have grown,” says Andrew Lepage, an analyst at CoreLogic in ABC.
“What we are experiencing is market adjustment,” said Skylar Olsen, director of economic research at Zillow, to the LA Times. “Housing prices were ahead of revenues at an unsustainable rate.”
At the same time, market experts note that price reductions are far from being observed throughout the state. Orange County fell the most, but, for example, the average price of a home in Los Angeles this March was $ 597,500 versus $ 585 thousand, that is, increased by 2.1%, although sales continued to decline in LA: 5749 houses were sold compared to 6801 in the same month last year.