With each new month comes a new home-price record.
That’s been the story so for this spring and summer in Los Angeles County, where the cost of buying a home just keeps going up.
A new report from CoreLogic pegs the median sale price in June at $569,000, besting the previous record set just one month earlier, in May, of $560,000. Before that, April had tied the record of $550,000 set 10 years ago in May 2007.
So June marks the third month in a row when LA notched or tied the high-price record. It’s also the 61st month in a row when prices have increased year-over-year.
CoreLogic analyst Andrew LePage places most of the blame on tight inventory.
“The market continues to receive little relief from its traditional pressure release valve—new-home construction,” he says.
“The magnitude of price gains during the second half of this year will hinge in large part on inventory levels, and at the moment there’s little reason to expect much change by year’s end,” he add.
There just aren’t enough homes available on the market, and there’s plenty of demand.
The number of homes sold countywide in LA last month jumped 8 percent since June 2016 and 14.6 percent from May to 8,716. “This suggests the region is burning through its limited supply quickly, and without a surge in new inventory it might be difficult to hold the pace,” LePage says.
The median price for all of Southern California is now $500,000.
Across the region, just over half, or 50.5 percent, of all homes sold did so for $500,000 or more. That’s the highest share for any month since July 2007. Sales of $800,000 or more are up, too, while sales below $200,000 plunged 21.6 percent compared with June 2016. But Orange and Riverside counties both leveled off in June, seeing no to very little change from May.