Record High on SoCal Home Prices Amid Tight Supply

Los Angeles, San Diego

2022/01/28

The record median sale price for six counties from Ventura to San Diego follows a year-long home buying frenzy.The increases were fueled by low interest rates, millennials entering the market, and a desire for more space during the pandemic.The median sales price ↑ 16.3% YoY in December, marking a 10th median high record in 2021.Economists expect home prices to rise by single digits this year, as already high prices and anticipated interest-rate hikes raise hurdles on ownership.Home inventory is at historic lows, with ↓ ~ 30% YoY inventory in LA and Orange counties last month. (Zillow) This is due to a lack of new construction and homeowners unwilling to give up low mortgage rates to compete in a hot housing market.In LA County, the median home price ↑ 15% YoY to a record $805K, while sales ↓ 5.8% YoY.