California Home Prices Surge in March

For the first time in nearly a year and a half the median home price in the California increased. Despite the fact that single-family detached homes sales are down 4.5 percent compared to February the statewide median price for an existing single-family detached home hit $291,080 last month which was a 9.2% increase from the February’s median price of $266,660.

In Los Angeles, the median price increased 4.5 percent from February to March and the San Francisco Bay Area had prices surging by 9.1% in March compared to February and prices in the San Mateo and Contra-Costa regions of California rose even higher.

The trigger for these price increases can be attributed to rising home sales and a declining inventory.

So what is happening in the South Bay area (Peninsula, Beach cities, Torrance, San Pedro etc).  Let’s take a look

If you will notice, since late 2008 the market had begun a slow recovery however, we had an early “letdown” in early 2011.  It’s good that the rest of California (in lower price ranges) are recovering as that may prove to be a foundation for a recovery in our higher priced area.  We’ve got a ways to go before we break through the channel formed (see red trend lines), let alone get back into the channel.

If you would like to monitor this chart on your own and keep your fingers on the pulse of the market, you go the Palos Verdes Real Estate Trends website.

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