Early this morning the Los Angeles Times posted an article about the state of Southern California’s real estate market. The news appears to be very good. It reports, based on various studies, that the housing market is almost back to where it was before the big crash. Home prices have been rising at a steady pace leading them to be at levels that they have not been at since before the recession in 2008 that caused the big crisis in the housing market.
As an example of this the article shared a study that reported the median home price in Orange County as of May was $651,500 which is actually higher than its peak in 2007 before the crisis. The article includes an interview with Dana Kuhn, a lecturer at Cork McMillin Center for Real Estate at San Diego State University. He is quoted saying that “Los Angeles and San Diego are getting very close to their former peaks.” What amazing news!
There has been a huge upswing in demand for housing as more and more people get jobs and start to get their faith in home ownership back. Recovering that faith in ownership is a wonderful thing. Even though it is great that the demand has been rising land has been becoming more and more scarce and new home building projects are harder to approve than ever. Kuhn also said “it can take years in Southern California coastal areas to get [those] projects approved.” Hopefully that issue will improve just as the others have improved over the past eight years.
At the end of the article Kuhn predicted that the prices will continue to rise to pass the previous peaks. I know we are all extremely grateful to have a healthy real estate market again. It has been a rough go but we made it through.
Check out the article here: