San Diego, CA (PRWEB) August 27, 2009
RealEstateInvestor.com is reacting to the recent news in homes sales. According to an article published in the Los Angeles Times last week, residents of Southern California are shopping for homes again triggering the highest sales levels in more than two years.
Last month, the median home price in Los Angeles County hit $321,000, rising from the $300,000 it was set at for most of the year. In Orange County, median home values rose to $420,000 from $370,000 in January.
Lower-priced homes, those listed at $500,000 or less, are driving these increased sales, up 19% from July 2008 sales.
There is a heavy demand for entry-level and mid-market homes because buyers anticipate that those prices won't go any lower.
CEO of RealEstateInvestor.com (REI), Colin Egbert says that this type of demand is common. "There's a lot of action going on because some investors are able to pay cash on these homes. It's definitely a good time for knowledgeable investors to get back into the market if they can." Even with the rise in home prices, the median price remains at 2002 levels and is 47% below peak which was set in 2007.
According to analysts, the recent increase in median prices is also due to the fact that more expensive homes are beginning to sell after a long drought. Many home owners have accepted the diminished value of their properties and are now pricing their homes to sell.