#real estate los angeles
Housing price cuts point to a shift in Southland market
The number of homes with reduced asking prices has risen sharply in recent months, a reversal from last year
The latest sign that buyers are gaining leverage in Southern California’s housing market: Price cuts are back.
The number of homes with reduced asking prices has risen sharply in recent months, a reversal from last year’s sellers’ market, when list prices seemed more like a floor than a ceiling.
In Orange County, the region’s priciest market, about one-third of sellers have been forced to cut prices, according to data from real estate firm Redfin. Across the Southland, prices have hit a plateau this summer, with sales volume slumping as buyers got pickier.
These trends have been building all year. But home sellers — often the last to see market shifts — are finally getting the message, said Paul Reid, a Redfin agent in Temecula.
A lot of what we’ve seen over the last six or eight weeks is people lowering their prices to get buyers in the door, Reid said.
The shift from a red-hot sellers’ market to something more balanced is reflected in price trends.
A lot of what we’ve seen over the last six or eight weeks is people lowering their prices to get buyers in the door. – Paul Reid, a Redfin agent in Temecula
Every month for nearly two years, starting in mid-2012, the median home price in Southern California notched double-digit annual gains, according to housing data firm CoreLogic DataQuick. The growth peaked last June, with a 28% gain.
Still, August’s median was $420,000, the highest point since the recession started in December 2007. That’s keeping many buyers on the sidelines, said Andrew LePage, an analyst with CoreLogic DataQuick.