Southern California Home Prices Hit Record High of $693,500 in November

Southern California home prices continue to soar, reaching a new record high of $693,500 in November, according to the latest data from DQ News/CoreLogic. This marks the ninth record home price set this year in the region, with four counties also hitting new high prices.

The median home price in November was up 15.6% from the previous year, a significant increase of $93,000. This surge in prices has been fueled by low mortgage rates, a desire for larger homes during the pandemic, and a growing number of millennial homebuyers entering the market.

Despite a slight cooling over the summer, bidding wars and high demand have persisted throughout the year. Sales for 2021 have been the highest since 2006, with November seeing a 23% increase in transactions compared to the previous year.

Real estate agents have noted the unprecedented nature of this year’s market, with bidding wars involving dozens of offers becoming common. The combination of rising prices and low inventory has made it challenging for some buyers to secure a home.

Looking ahead, housing economists predict a less frenzied market in 2022 as rising mortgage rates and an increase in inventory may help to stabilize prices. While most economists do not anticipate a drop in home prices next year, they expect price gains to slow to single digits.

Overall, the housing market in Southern California is facing constraints due to low inventory levels, with some areas experiencing a significant decrease in the number of homes for sale compared to previous years. Despite these challenges, the market is expected to remain strong, with prices forecasted to continue rising in the coming months.