California Real Estate: Values Up Over 33%
More good news for the California real estate market, average home values are up across the state. In a string of recent positivity in the California and US marketplaces, data shows that average values of single family homes are up by 33.5 percent from the previous year.
This information, from the California Association of Realtors, shows that despite a slight ease in sales, the lack of inventory continues to drive home values up. Inventories are slowly rising, but not as quickly as prices. It should be noted that the slow in sales is due, much in part, to the rise in interest rates, as of lately.
The average home price in California was $428,510 in the month of June, rising from $320,990 in June of 2012. These reviving values give current homeowners, who foresaw losses on their homes, hope for a brighter resale or trade-up.
In a standard or healthy market the inventory would be anywhere from six to seven months of supply, whereas in the current market's climate we are seeing 2.9 months of inventory. This number is down from June 2012's 3.5 months and does not include new development, but is low nonetheless.
As inventory rises and values lead the way, the California real estate market – and most of the rest of the country – is seeing a major recovery in housing and the economy. With these numbers, seems that many good things are on the horizon.
Are seeing these rising values in your area? Do these numbers change your current outlook on the real estate market in your neighborhood?
Be sure to let us know your thoughts and answers in the comment section below.
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