The housing market turnaround in Southern California is pushing prices higher as the number of foreclosure sales has dropped, real estate analysts said.
Foreclosure sales have dropped to 16.4 percent of sales in Southern California in September, the lowest level in nearly five years, DataQuick reported this week.
The Los Angeles Times reported Saturday the median price for homes in the region is climbing as inventories of homes on the market have fallen.
The median price — halfway between the lowest and highest prices of homes on the market — hit $315,000 in September, a climb of 1.9 percent from August and 12.5 percent from September 2011.
“Right now, inventory is down 40 percent or 50 percent, depending on where you are in LA, so people are going crazy — they can’t find anything to buy,” said Glenn Kelman chief executive officer at Redfin, a housing brokerage firm.
“The latest stats suggest unbelievably low mortgage rates and modestly higher consumer confidence continue to put pressure on a supply-starved housing market,” said DataQuick President John Walsh.
“Assuming this year’s modest upward trend in pricing holds, we’ll eventually see the market begin to re-balance with more supply, though that could take many months,” he told the Times.