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Southern California Home Prices Rise
Southern California home sales remain at near- record levels as prices
continued their climb to new heights, the result of continued demand and the
expectation that mortgage interest rates will continue to increase, a real
estate information service reported.
A total of 54,500 new and resale houses and condos were sold statewide in
April. That's up 43.8 percent from 37,900 for February and down 12 percent
from a revised 62,300 for March 2005. An increase from February to March is
normal for the season.
The median price paid for a home last month was $473,000, a new record. That
was up 3.5 percent from $457,000 for February and up 12.4 percent from
$421,000 for March a year ago.
The typical mortgage payment that home buyers committed themselves to paying
last month was $2,250. That was up from $2,143 in February, and up from
$1,954 for March a year ago.
"Potential buyers typically get off the fence when interest rates are on the
rise, which may account for part of last month's high sales count.
Additionally, more homes are on the market these days, giving buyers more
choice than they had a few months ago.
Market stress indicators in Orange County are still very low. Down payments
are stable, speculation buying is moderate, there are no significant shifts
in market mix and default rates are rising, but still low. Earlier increases
in non owner-occupied purchase activity and flipping activity have leveled
off. The use of adjustable-rate mortgages has dropped the last three months
in Orange County.
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