Original Article – https://www.dailynews.com/2021/08/24/12-trends-explain-los-angeles-countys-3rd-straight-home-price-record-to-795000/

Los Angeles County’s homebuying remained hot in July, with prices setting a record high for the third straight month.

High prices and limited choices didn’t stop house hunters anywhere in Southern California from buying homes at a pace not seen in years. Here are 12 must-watch trends my trusty spreadsheet found within DQNews/CoreLogic’s report on closed transactions in July for Los Angeles County …

  1. Sales: 8,177 existing and new residences sold — down 5% from July but up 20% from July 2020.
  2. Context: You have to go back to 2015 to find a July with more sales. This was the No. 16 busiest July since 1988. Last month was 14% above the 10-year average buying pace for July. Compared with the previous month, sales decreased 4.9% vs. an average 3.6% June-to-July decline since 1988.
  3. Past 12 months? 88,730 Los Angeles County sales — up 32% above the previous 12 months and 15% above the 10-year average.
  4. Prices: The countywide $795,000 median was up 18.7% in 12 months. This breaks the record $790,000 set in June.
  5. Context: Over 10 years, price gains averaged 9.5% annually. The latest 12-month gain ranks No. 51 of the 391 12-month periods since 1988.
  6. Past 12 months? Seven records set. The median’s $125,000 increase equals a $14.27 gain every hour over 12 months.

Here’s a look into key slices of Los Angeles County’s market in July …

  1. Existing single-family houses: 5,481 sold, up 16% in a year. Median of $860,000 — a 18% increase over 12 months.
  2. Existing condos: 2,302 sales, up 27% over 12 months. Median of $640,000 — a 19% increase in a year.
  3. Newly built: Builders sold 394 new homes, up 43% in a year. Median of $872,000 — a 31% increase over 12 months.
  4. Builder share: 4.8% of sales vs. 4% a year earlier. Los Angeles County builders’ slice of the market ranks No. 5 among SoCal’s six counties.

And the bigger picture …

  1. Rates: How cheap is money? Rates on a 30-year, fixed-rate mortgage averaged 2.94% in the three months ending in July vs. 3.14% a year earlier. That translates to 3% more buying power for house hunters.

At these rates, a buyer with 20% down would pay $2,660 a month on the $795,000 median sale vs. $2,300 on last year’s $670,000 median. So during the past year, the typical house payment is 15.7% pricier.

  1. Supply: Some good news for those seeking homes is a steady increase in for-sale listings since May across Southern California. As of Aug. 5, there were 1,310 more listings from a month earlier, according to ReportsOnHousing.com. But this month’s 21,173 listings still were down 20% from a year ago.

Six-county region: 24,947 sold — down 8% for the month, but up 10% in a year. Median? record $681,750 — a 18% increase.

Orange County: 3,612 sold — down 13% for the month, but up 5% in a year. Median? record $904,000 — a 17% increase.

Riverside County: 4,330 sold — down 10% for the month, but up 7% in a year. Median? record $525,000 — a 23% increase.

San Bernardino County: 3,266 sold — down 8% for the month, but up 4% in a year. Median? record $455,000 — a 21% increase.

San Diego County: 4,429 sold — down 8% for the month, but up 4% in a year. Median? $730,500 — a 15% increase.

Ventura County: 1,133 sold — down 4% for the month, but up 10% in a year. Median? $735,000 — a 16% increase.

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