In southern California for the first time in 7 years reduced the price of the property

According to real estate Agency CoreLogic, the average home price in southern California this March was $518 500, which is 0.1% less compared to $519 thousand in March 2018. The phenomenon of the market, as the decline in property prices recorded in California for the first time in 7 years.

At the same time for all segments and districts continued to decline in the sales volumes (this is the last 8 consecutive months) — in March, they decreased 14.1%. This situation can lead to a drop in prices in a tailspin, and then many buyers delaying the purchase for a long time, will still be able to purchase housing.

In southern California for the first time in 7 years reduced the price of the propertyshutterstock

However, analysts are not inclined to believe in the scenario of a sharp decline in property prices in the state with sustainable economic growth and record low unemployment (4.3 per cent). «This is the March a slight decline reflects both the leveling of housing prices in recent months, so the shift in the market structure where increased sales in segments with low price,» explains the ABC’s Andrew Lepage, an analyst with CoreLogic. «What we are experiencing is a market correction, said the LA Times Skylar Olsen, Director of economic research at Zillow. — Housing prices outpaced incomes with unstable speed».

Thus experts of the market notice that the price reduction has not been the case throughout the state. Stronger than all fell orange County, but, for example, the average home price in Los Angeles in March $597 500 versus $585 million in March 2018, which is an increase of 2.1%, while in LA, too, continued reduction in sales volume: homes sold 5749 compared to 6801 in the same month last year.