- April 19, 2013
California’s median home price for March hit its highest level since May 2008, according to the California Association of REALTORS® (C.A.R.), based on information collected from more than 90 local REALTOR® associations and MLSs statewide.
The statewide median price of an existing, single-family detached home climbed 13.7 percent from February’s $333,380 median price to $378,960 in March. Yes, that is a 13.7 percent increase in a single month. The month-to-month increase was the highest since C.A.R. began tracking this statistic in 1979. The March 2013 price was up 28.2 percent from March 2012, marking the 13th consecutive month of annual price increases and the ninth consecutive month of double-digit annual gains.
The available supply of homes for sale fell significantly in March, falling to a 2.9-month supply, as measured by C.A.R.’s Unsold Inventory Index. The March Unsold Inventory Index for existing, single-family detached homes was down from 3.6 months in February and down from 4.2 months in March 2012. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered normal.
What does all this mean? It means home sales are ‘hot’ – good news for sellers, more bad news for buyers. Low inventory, record low interest rates and the overall housing recovery continue to drive up prices. Is it a bubble? Most doubt these increases are the signs of another bubble. After all, today’s buyers are extremely well qualified (you have to be to get a loan today) or using all cash. The speculators and under-qualified buyers of past bubbles are not who’s buying today.
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Author Devin R. Lucas is a Real Estate Attorney, Broker and REALTOR®, specializing in Newport Beach, Costa Mesa and Orange County, serving individual, investor and small business interests in real estate. Active with the Newport Beach Association of REALTORS® and Costa Mesa Chamber of Commerce, Devin R. Lucas Real Estate is an independent real estate brokerage and law practice located in Newport Beach, California.
Devin R. Lucas Real Estate
Real Estate Attorney | Real Estate Broker | REALTOR®
devinrlucas.com | firstname.lastname@example.org | BRE No. 01912302
949.478.1623 office | 888.667.6038 fax
2901 West Coast Highway Suite 200
Newport Beach | California | 92663-4023