On Wednesday, a new report show that there is no end in sight to rise in home prices in California, this jumped again over last year.
A report by CoreLogic revealed that prices for a single family detached and attached homes rose by 5.8% between May 2016-2017. LA sae a bigger bump of 6.4%, falling short of nationwide which is increased by 6.6%.
A shortage of hoes drove price hike. Developers are not building enough to keep the pace with demand, and its going to get worse, said CoreLogic President, CEO Frank Martell.
A firm predicts that years over years California will see an increase in price by 9.7% in May 2018. Residents of this state will feel effects of escalating housing prices, Martell said.
Martell said that for present home owners a string run up in home prices has boosted up equity. For potential first time homebuyers and renters it is not a pretty picture. With rental inflation and price appreciation there is an outstrip in growth of income, which is affordability to become a bigger issue in most of the markets.
CoreLogic figures from May show that an individual cities throughout Southern California, this is far bigger price hike.
In Canyon, a median price in May for existing single family house was $609,000 up by 20.6% from a year. 91201 zipcode of Glendale saw an 18.9% annual increase. 91605 of North Hollywood rose by 15.1% to $535,000.
Hawthorne’s home price rose by 18.2% during same period to $579,000. Inland, 91737 area of Rancho Cucamonga saw 15.8% increase over year, bringing median price for existing single family home to $611,000.
92614 are of Irvine saw 36.4% increase, this bring its median price up to $970,000.
Bill Holman, VP of land development for Rosedale Land Partners and Christopher Homes, master developer of 1,250 home Rosedale community in Azusa, said by the home builders who are caught in regulatory bind.
He said that this takes long to bring lots to market in current regulatory environment. And you don't have available land where you can generate lots, so you are faced with more challenging role of recycling lots for reuse. If you look city to city, you will see that they have older warehouse uses and office buildings which look tired and old.