ENDING the month of November 2021, the Southern California housing market continued to appreciate in comparison to the prior year (Nov 2020) for single-family homes.
Los Angeles County’s median sales price increased 10% to $880,000 and an average sales price of $1,305,876 (13%) for single-family homes. Orange County’s median sales price increased 22% to $1,125,000 and an average sales price of $$1,482,913 (21%). Riverside County’s median sales price increased 19.2% to $565,990 and an average sales price of $656,330 (18%). San Bernardino County’s median sales price increased 17% to $475,000 and an average sales price of $527,921 (16%).
Average Days On Market (DOM). The average days on market continued to be strong. Homes for sale in LA County were on the market for an average of 23 days. Orange County had an average of 19 DOM, Riverside County had an average of 24 DOM, and San Bernardino County had an average of 25 DOM.
Is the market slowing down or going up? Based on the data from the past 12 months, the market continues to be going strong. Although the data shows that the overall market continues to increase, keep in mind that real estate is hyperlocal, and demand depends on your local area market, the local zip code, and neighborhood.
The main factors currently driving up real estate prices in Southern California are: 1) continued shortage of homes for sale, and 2) low finance rates.
Is it still a good time to buy or sell? Yes, both. It’s a good time to buy because of low mortgage rates. If you are currently renting but you can purchase a home and have a similar monthly debt payment, then for most people it would make sense to purchase. If you’re currently a homeowner and your home’s value has increased, then it’s a good time to sell and reinvest the profit for a larger primary residence, real estate income property, other investments, downsize and pocket the net profit, or retire.
Location, location, location. Why is location so important? The comment I hear the most is “I can buy a home outside of California that’s less expensive.” That is true to a certain degree. But also realize that the cost of any product, and especially real estate, is based on market demand.
We have in California what we’ve termed locally the “weather tax.” The closer you live to the coastal areas with the most ideal weather all year round, expect to pay the higher cost of real estate and the higher cost of living. Additionally, California has the largest economy in the U.S. made up of a diverse and broad range of industries providing employment and business opportunities.
There are areas within the state of California with homes priced like what you find out of state, however, the question to ask yourself is — do you really want to live and work there? What’s the trade-off? You can buy an inexpensive home in the Midwest, the Southwest, or even within California’s High Desert, Central Valley, and rural areas, however, if doesn’t meet your needs for your career, business, your children’s schools, or personal lifestyle, then an inexpensive priced home can be costly in terms of loss in opportunities for you and your family.
What is your goal? Whether you’re planning to buy or sell your home, always ask yourself — what is your goal? Do you want to invest in real estate for additional income and long-term wealth? Is it time to stop paying your landlord and invest in your own home? Is it time to sell and purchase a larger home? Do you want to downsize? Is it time to move on? Is it time to finally retire? There are things in life that can’t be bought or replenished, and that’s time. Time is of the essence whether you’re looking to buy or sell as an investor, or as a homeowner. (*Figures are based on CRMLS data, as of Dec 2021.)
Life’s Short, Love Where You Live.
Call / Text 213-608-5837 for a complimentary consultation, property value assessment, or questions for Selling, Buying, or Investing in real estate. Connect with me @jasonarealtor on Facebook, Instagram, and LinkedIn. JASON AGCAOILI, REALTOR | Ca DRE #01947185
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