Finally, some good news for the California housing market – median home prices are on the rise. According to a report released by MDA DataQuick, a La Jolla, California housing-data provider, California’s median home price rose from $224,000 in February 2009 to $249,000 in February 2010, an increase of 11.2%. Thanks to record low current mortgage rates and a shift in home-buyer interests, the California housing market is showing signs of stabilization.
Median Home Prices Rose 11.2% from February 2009 to February 2010
The 11.2% boost in median sales prices represents the largest year-over-year jump in California home prices since March 2006. The driving force behind the current surge in prices is the fact that consumers have at last begun showing interest in costlier properties towards the California coast in lieu of foreclosed bank-owned homes and bargain-basement homes in more inland areas. According to DataQuick analyst Andrew LePage, “There has been a shift in what’s selling and what’s not selling. The high end has woken up, whereas it was comatose a year ago.” To put it in perspective, from February 2009 to February 2010 home prices in:
· San Francisco Bay rose 20% to $354,000
· Southern California rose 10% to $275,000 (thanks largely to home values in San Diego increasing by upwards of 13% from their February 2009 levels)
· Santa Clara County rose 12.5% to $460,000
Despite the increase in home values and indications of recovery, the California housing market and economy still have a long way to go to reach former peak conditions. In February 2010, while default notices were down 37.7% from February 2009, they still increased by 19.7% from January 2010. Unemployment in California still lingers around a high 12.5%. For the California economy to truly recover, these numbers need to decrease dramatically.
Nevertheless, California home prices are still significantly below their peak levels and it is still very much a buyer’s market. Total Mortgage Services offers some of the best current mortgage rates in California for your refinance and purchasing needs. Whether you require an FHA loan in Los Angeles or are looking for a Jumbo loan in Orange County, call 877-868-2503 to speak with one of our mortgage experts today.
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