Southern California home prices surge, tying an all-time high
12/27/2017 | Stephanie De La Rocha
Southern California home prices surged 8.6% in November compared with a year earlier, tying an all-time high that underscores a drum-tight housing market with few properties for sale, according to a report released Wednesday.
The six-county region’s median home price hit $505,000 last month, a nominal record last seen in September and, before that, in 2007 before the housing market collapsed.
November sales, meanwhile, were essentially flat, down just 0.1% from a year earlier.
The report, released by data firm CoreLogic, reveals a housing market that shows little sign of slowing down. A combination of strong job growth, historically low mortgage rates and a shortage of listings is driving prices ever higher.
The region’s median home price hasn’t fallen on a year-over-year basis in more than five years.
Prices rose in all six counties tracked by CoreLogic.
- Los Angeles County: up 7% to $567,000.
- Orange County: up 6.1% to $700,000.
- Riverside County: up 7.4% to $365,000.
- San Bernardino County: up 7.6% to $317,500.
- San Diego County: up 9.1% to $540,000.
- Ventura County: up 10.5% to $580,000.
There are some potential headwinds on the horizon, however.
The tax bill signed into law by President Trump this month makes key changes to what households can deduct, including a new $750,000 cap on the mortgage interest deduction and a $10,000 cap on a combination of state income and property taxes.
Those provisions could crimp demand in some upscale neighborhoods and lead to price declines, according to some economists.
Others have scoffed at that notion, saying the changes are unlikely to send prices down given the strong demand for housing in California.