Southern California Real Estate Market Dips in January, but Not in Affluent Neighborhoods
While Sales fall as high prices and tight inventory handcuffed some potential home buyers, the high-end market continues to flourish
Home sales dropped 3.8% in January across the Southland compared with December, although median price is well above last year’s mark, according to the Multiple Listing Service. The price decline, coupled with falling sales, revealed a market that has lost momentum after an explosive price run-up in the first half of 2013. We discussed this at length in a blog post last month
Sales in the lower end of the market continued to decline in January, while sales in more affluent neighborhoods rose. The number of homes that sold for $800,000 or more jumped 36.7% compared with a year earlier.
But overall sales fell, as lower-priced neighborhoods remain stymied by low inventory and weak income growth. Even though prices have risen considerably in these areas, many homeowners saw big drops in their home’s value during the housing crash.