Southern California home prices surged 8.6% in November compared with a year earlier, tying an all-time high that underscores a drum-tight housing market with few properties for sale, according to a report released Wednesday.
The six-county region’s median home price hit $505,000 last month, a nominal record last seen in September and, before that, in 2007 before the housing market collapsed.
November sales, meanwhile, were essentially flat, down just 0.1% from a year earlier.
The report, released by data firm CoreLogic, reveals a housing market that shows little sign of slowing down. A combination of strong job growth, historically low mortgage rates and a shortage of listings is driving prices ever higher.
The region’s median home price hasn’t fallen on a year-over-year basis in more than five years.
Prices rose in all six counties tracked by CoreLogic.
- Los Angeles County: up 7% to $567,000.
- Orange County: up 6.1% to $700,000.
- Riverside County: up 7.4% to $365,000.
- San Bernardino County: up 7.6% to $317,500.
- San Diego County: up 9.1% to $540,000.
- Ventura County: up 10.5% to $580,000.
There are some potential headwinds on the horizon, however.
The tax bill signed into law by President Trump this month makes key changes to what households can deduct, including a new $750,000 cap on the mortgage interest deduction and a $10,000 cap on a combination of state income and property taxes.
Those provisions could crimp demand in some upscale neighborhoods and lead to price declines, according to some economists.