Southern California's median price for a home was up by 4 percent to nearly $290,000, this past December from the same month in 2008. This has been the first yearly gain since the market meltdown in 2007.
Increasing home prices could aid in the economic recovery of Southern California, as the housing market recovery would probably result in more jobs in construction, lending institutions, escrow companies and real estate firms.
While we may be emerging from the woods, and things may be looking up for residential real estate, the commercial market, such as retail or office buildings, is still in a fairly depressed state and may have a somewhat negative effect on the entire real estate market.
Despite the December rise in the median home price, it was over 40 percent below the high median price during 2007 of over $500,000. On the other hand, the pace of sales during last December was the best seen in almost four years. The appearance of more buyers during 2009 and the evening out of home prices was greatly aided by the support given to the housing market by the Federal government, which provided tax incentives to purchasers.
At the beginning of 2009, foreclosed properties made up a large portion of residential sales. As of last December, such properties represented a smaller portion of overall sales. The median prices were generally higher due to more sales in the middle and higher price ranges.
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