Some of the wind appears to have gone out of the sails of the southern California real estate market. Unlike the first half of 2013 when home prices and demand spiked upwards sharply, 2014 appears to have gotten off to a distinctly different start. Home prices in January 2014 fell by 3.68 percent compared to prices in December. Median home prices in southern California are still substantially higher than median prices in January 2013. Even so, home prices in the area are at the lowest level since at least May 2013.
Meanwhile, sales of new and resale homes too sunk to a three year-low in January. This marks the fourth month in a row that sales numbers have dipped below the previous month signaling a definite shift in mood among homebuyers. Real estate analysts are unsure what to make of the trend and are waiting to see how the market fares in spring. They believe that at least some of the current softness in demand is normal for this time of the year. The spring months are when sellers list more homes for sale and a clearer picture of market demand and pricing is only likely to become available then.
For more information about Escrow Services in California please contact Eastland Escrows, Inc., located in Covina.