We already know that home prices in California are high. Home Prices in Southern California? They’re skyrocketing.
Hitting an all-time high is great if you’re talking about consumer confidence or if you’re an athlete talking about your stats. If you’re talking about home prices in southern California, however, it’s not so great.
Yet, according to the LA Times that’s exactly what happened. In a whopping 8.2% increase from last year, Southern California home prices have hit an all-time high.
The median home price in SoCal right now?
This follows a disturbing trend in California real estate. While high home prices can be great for sellers, it’s also a warning sign. The skyrocketing cost of living has been cause for concern in recent years. Many residents are even looking to leave parts of California in search of a lower cost of living.
What’s The Reason?
The blame for the high cost of housing has been attributed to multiple factors. From baby boomers who are not downsizing to a simple matter of supply and demand. The latter has been attributed to rising home prices around the country. Simply put, developers can’t build enough housing to meet the demand.
The home prices in Southern California may also be impacted by strict zoning laws which impede new developments.
A Look Back
Home prices in Southern California have been high for a while. You can see from the chart above that home prices took a dip starting in 2008. This was the case around the country as the housing bubble burst and the recession hit.
Steadily, home prices have been increasing as the recovery has progressed. What has been somewhat troubling, however, is the rate of the increase. Home prices in Southern California have doubled in less than ten years.
Now, they’re at an all-time high and show little sign of slowing down.
What Does It Mean?
There are fears that California is in the throes of another housing bubble. If this is the case, or if it will burst anytime soon, no one knows. What does seem certain is that the cost of living in California is, and continues to be expensive.
This is one of the reasons why low and middle income residents of California are feeling priced out.
Cost of living varies around the country. This is why City vs City uses real, local data curated at the zip code level to determine an accurate cost of living analysis. Our app accounts for the cost of housing not in your state, but within your zip code.
If you’re thinking of moving, simply input your data and reveal your cost of living expenses. Then, compare your current expenses against the zip code of the city you’re planning on moving to. As a result, you’ll see a side by side comparison of costs.
If the home prices in Southern California have you thinking of getting out, we can help. Don’t make a move without downloading City vs City.