The Southland's housing market got off to its best start in six years during January with the median price jumping 24 percent and sales increasing 11 percent from a year earlier, a research firm said Wednesday.
Sales of new and previously owned houses and condominiums rose to 16,058 properties in January from 14,523 a year ago, said La Jolla-based DataQuick. Last month's total was the highest for a January since 18,128 sales in January 2007.
January's median price hit $321,000, up from $260,000 a year earlier, DataQuick said. The median was down slightly from $323,000 in December, which was the highest price for any month since $330,000 in August 2008.
January's market got a boost from near record level sales to investors and cash buyers and move-up activity that remained relatively robust, the company said.
"This fledgling housing recovery has momentum. Already, price hikes have caused some to question whether it's sustainable, whether it's a bubble," DataQuick president John Walsh said in a statement. "Let's not forget, though, that we're still climbing out of a deep hole from the housing downturn."
He noted that regional home sales remain subpar and prices in many areas are at least 30 to 40 percent below their peaks.
"That's not to say we don't see risks. Sharp price gains can attract speculation, which could lead to unsustainable, short-term gains," Walsh said. "A lot of today's housing demand is fueled not by spectacular job growth and soaring consumer confidence, but by superlow mortgage rates and unusually high levels of investor and cash purchases. Take away any one of those elements and it will matter."
Kimberly Ritter-Martinez, an economist at the Kyser Center for Economic Research in Los Angeles, said that that it might be too soon to use the "B" word in this cycle.
"I think we can pretty safely say we're in a sustainable recovery. Spectacularly low interest rates are providing the biggest boost, and you have a lot of people who were sitting on the fence jumping back into the market," she said. "I think we are going to see price inflation."
Both sales and prices increased across the region last month. DataQuick said that:
? In Los Angeles County sales increased 6.2 percent to 5,308 properties from 4,997 in January 2011. The median price increased 17.6 percent to $340,000 from from $289,000.
? In San Bernardino County sales rose 4.2 percent to 2,137 properties from 2,051 a year ago. The median price increased 18.3 percent to $177,500 from $150,000.
? Riverside County's median made the biggest jump, increasing 25.2 percent to $226,000 from $180,500. Sales increased 6.5 percent to 2,858 from 2,684.
? In Ventura County sales rose 8.2 percent 607 from 561. The median price gained 13.2 percent to $365,000 from $322,500.
Absentee buyers - mostly investors but also some second-home purchasers - bought a record 30.7 percent of Southern California homes sold in January.
Buyers paying cash for homes accounted for 34.9 percent of last month's sales down slightly from the record 35.7 percent in December 2012, the company said.
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Source: http://www.dailynews.com/news/ci_22585462/southern-california-housing-market-sees-best-january-six?source=rss
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