The Southern California housing market sizzled in June, as a new report reveals home prices spiked by a whopping 28% as compared to a year earlier. That gain was more than what occurred in any month during last decade’s housing bubble, according to the Los Angeles Times.
The median price of a Southland home came in at $385,000 in June, which was up from a median of $300,000 in June 2012. Continuing to spur the upward trajectory of Southern California home prices is a lack of inventory and “buyers scrambling to close deals before the window of affordability slams short,” the Times reports.
At the peak of the last housing bubble in 2007, the median price of a Southern California home was $505,000. To many real estate experts, this means there is still room for growth. In fact, one person told the Times he expects prices to double from last year’s low.
“You have a lot of room to run because historically, they always double in these cycles, and then they drop back a bit,” said Syd Leibovitch, founder and president of Rodeo Realty in Beverly Hills.
There were 21,608 new and resale houses and condos sold in Southern California last month. Indicating the tight supply, that was down 2.1% from June of 2012 and a 6.2% decline from May.
Here is the breakdown of the home median price for various Southern California regions, along with the percentage change from June 2012:
Los Angeles, $425,000 (+30.8%)
San Diego, $416,500, (24.1%)
Riverside, $269,250 (30.4%)
Orange, $545,000 (20.3%)
San Bernardino, $204,000 (29.1%)
Ventura, $450,000 (23.1%)