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February's median home price of $320,000 ($350,000 in LA County) actually fell a tiny amount compared with a month earlier, but it was up 21 percent from February of last year, according to Dataquick. And the number of homes selling for $500,000 or more jumped 54 percent from a year earlier - another sign that the market is now centered on higher-end buyers (many of them investors, many offering all cash) who are driving up the prices on a limited number of available properties. February is not normally a big month for home sales, but the numbers reflect the market's months-long turnaround. As for prices, Dataquick President John Walsh notes that February's $320,000 figure is where the median was in mid-2003 and remains well below the 2007 peak of $505,000. Just a little context. From press release:
"Our January and February stats certainly indicate housing remains a big target for investors. But typically those two months don't offer much insight into how the market will behave the rest of the year. These are sales that closed in January and February, meaning many of the buyers were out home shopping during the holiday season late last year. That's when many traditional buyers and sellers drop out of the market, leaving a relatively high concentration of very motivated market participants, especially investors," said Walsh. "March and April will offer a better view of how broader market trends are shaping up this year. One of the real wild cards will be how many more homes go up for sale. More people who've long been thinking of selling will be tempted to list their homes at today's higher prices. Fewer people will be underwater and therefore could at least break even on a sale. Some investors who've held for a while will consider cashing in. A meaningful rise in the supply of homes on the market should at least tame price appreciation."
FEBRUARY HOME SALES (% change from February 2012)
Los Angeles 5,481 +4.2%
Orange 2,252 +6.7%
Riverside 2,833 -5.9%
San Bernardino 1,959 -5.9%
Ventura 641 +5.8%
FEBRUARY MEDIAN PRICE (% change from February 2012)
Los Angeles $350,000 +17.1%
Orange $477,000 +22.3%
Riverside $228,000 +18.1%
San Bernardino $175,000 +18.2%
Ventura $389,000 +19.7%
Source: DataQuick, DQNews.com
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.