Southern California’s hot real estate market continues to sizzle, but is showing some signs of slowing. According to the Daily News, the total number of houses sold in June was done 5% from last year. Still, median prices all over Southern California were well into the twentieth percentile.
Pending escrows, a measure of future sales, is down 11.8 percent on the year, and was down 8.6 percent compared with last June. Additionally, the housing supply is up a bit, at around 21/2%, providing buyers a few more properties to pick from.
As the economic recovery continues to start and stall, Southern California real estate is affordable for only less than 20% of the current population, which is down by 12% since last year. Interest rates are predicted to continue their upward push, and one begins to wonder who is going to be able to afford a house?
In fact, some were thinking this, as condo market sales shot up 14.4 percent last month. Still, the Southern California condo market is only up less than a percent on the year. It’s hard to speculate whether the condo market will pick up as the general real estate market in Southern California slows – if it slows.