SoCal Home Prices Reach Record High

LOS ANGELES, CA — Southern California home prices have tied an all-time high, and there is little sign of a slowdown, according to a report released Wednesday.

The median price of a home in Los Angeles County rose by 7 percent in November compared with the same month a year earlier, while the number of homes sold increased by 0.6 percent, CoreLogic, a real estate information service announced Wednesday.In Orange County, the median price was $700,000 last month, up 6.1 percent from $660,000 in November 2016. The number of homes sold climbed by 2.4 percent, from 2,965 in November 2016 to 3,037 last month. Overall, region’s median home price jumped to $505,000 in November. That ties the record set before the housing market crashed in 2007, the Los Angeles Timesreported.

"Total home sales this November were roughly flat compared with a year ago, but that masks the relatively steep 14 percent gain in sales of $500,000 or more and the nearly 12 percent decline in the number of sales below $500,000," said Andrew LePage, research analyst with CoreLogic. "Even though the lower price ranges have strong demand driven by economic and demographic factors, inventory tends to be tightest in the more affordable areas and new-home construction has been focused on the middle- and high-end of the market."

Sellers, buyers and analysts are now watching to see if the GOP tax plan, which caps the mortgage interest deduction will have an effect on California's housing market, particularly in coastal regions in Los Angeles, Orange County and the Bay area where the median selling price in some cities exceeds the $750,000 cap.

According to CoreLogic, the median price of a Los Angeles County home was $567,000 last month, up from $530,000 in November 2016. A total of 6,494 homes were sold in the county, up from 6,455 during the same month the previous year.

A total of 19,569 new and resale houses and condos changed hands in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month, according to CoreLogic. That was down 5.7 percent from 20,751 in October, and 11 fewer sales than November 2016.

The median price of a Southern California home was $505,000 in November, up 2 percent from $495,000 in October and up 8.6 percent from $465,000 in November 2016.

City News Service contributed to this report.