LA home prices trending down, but experts say market is becoming more healthy

Over the past year, the average home price in southern California has been on the rise, providing optimism that the real estate market is set to see significant improvement. The latest numbers, unfortunately, have tempered this optimism somewhat, but experts still believe that the real estate market is becoming healthier overall.

According to information collected by the research firm DataQuick, the median sale price for homes in southern California was $383,750 in October of this year. This marks a 21.8 percent improvement from the same month last year, but the number has remained virtually unchanged for nearly four months.

Earlier this year, home prices rose as home inventory reached record lows. As inventory has grown over the course of the year, and as mortgage rates have gone up, the average sale price has reached a plateau. In addition, as prices went up over the course of the year, the number of investors willing to put their money into southern California real estate dropped slightly. Absentee buyers, many of whom are investors, accounted for about 26 percent of all homes sold in southern California in October, as compared to 32 percent in January.

Overall, home sales decreased 4.4 percent from October of last year. One important factor is that the number of foreclosed homes available for sale has gone down as the number of foreclosures has gone down. Indeed, the number of homes sold this year that had been foreclosed upon recently reached its lowest level since May 2007.

Nevertheless, experts believe that the real estate market remains strong. They cite the fact that demand for real estate remains high while inventory remains relatively low. The fact is that there are still people looking to buy. If information about short sales and foreclosures are removed, it shows that conventional sales have increased approximately 32 percent over the past 12 months. These numbers show that southern California, along with many other areas of the country, is well on its way to a stronger, healthier real estate market.

If you are considering purchasing residential property or if you have questions about leasing a property for your business, consider speaking to an experienced real estate attorney. No matter the circumstances, a real estate lawyer can explain your options and help you decide which steps to take next. Contact an attorney today to learn more about what a real estate attorney can do for you.