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Southern California Home Prices Hit Bottom
By Scott Roberts, 16 Sep 10:53
Southland home prices move north for fourth consecutive month
The median rose 2.6% last month to $275,000, according to real estate research firm MDA DataQuick. But the number of homes sold, although up 11% from August 2008, was down 10.8% from July.
Southern California's median home price climbed for a fourth straight month in August, boosted by investors snatching up homes in distant suburbs and a relative decline in foreclosed homes for sale, a real estate research firm reported Tuesday.
The median price inched up 2.6% from July to $275,000, according to MDA DataQuick. The market bottomed out in April at a $247,000 median, the San Diego company said.
Behind the price improvement are investors like Robert S. Moore, a Rancho Palos Verdes management consultant, who is wrapping up his third home purchase in as many months. Moore, 50, is paying $90,000 for a four-bedroom house in the Riverside County city of La Quinta, which he plans to rent out for at least 10 years.
"How much lower can it go? I'm buying them for less than it costs to build them," Moore said of his investment properties.
Investors made up 20% of purchases in August, up from 17% in January. When homes can be bought for less than $100,000, Moore said, the risk of further price declines is hardly worth worrying about.
Even with last month's increase, the median price remains at 2002 levels. It is down 45.5% from its peak of $505,000 reached in 2007, and 16.7% below the same month a year ago. The median price is the point at which half the homes sold for more and half fo
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Tags: housing market