Home prices in Southern California are soaring as buyers capitalize on low interest rates coming out of the pandemic.
The median home price across the six-county region shot to an all-time high of $667,000 in May, up from $655,000 in April — the previous record — and representing a 25 percent increase over May 2020, the Los Angeles Times reported, citing data from DQNews.
Sales volume has doubled in some areas, including Los Angeles and Orange counties, compared to May 2020, when coronavirus lockdowns halted activity. Now, lockdowns waning, many buyers are taking advantage of low mortgage rates and upgrading to larger homes.
Orange County saw the highest median home price at $895,000, a 19 percent jump from May 2020. Median home prices in Los Angeles were the second-highest at $775,000 in May, followed by $725,000 in San Diego County and $701,500 in Ventura County.
Some experts believe home prices may be approaching a plateau. Nationally, buyer demand has fallen 14 percent from its peak in April, as has the number of home sales entering escrow, according to data from Redfin.
Prices may be pushed up by a lack of inventory — for large swaths of buyers, it’s difficult to even find a home to buy. In May, 5,531 contracts were signed to buy homes in Los Angeles, according to a report from Douglas Elliman, but less than 3,500 homes hit the market — down from 6,200 in May 2020.
[LAT] — Isabella Farr