v.20 n.16 – Released April 25, 2016
This Week’s Headlines:
- SoCal Home Sales and Median Prices in March
- Events of Interest
- May 10, 2016: San Gabriel Valley Economic Outlook
- June 16-17, 2016: Select L.A. International Investment Summit
Home sales in Southern California increased slightly over the year in March, rising by 1.9% to 20,370 units (new and resale houses and condominiums). Sales last month were the highest for the month of March since 2013, but were still below the March average of 23,849 units observed since 1988. Over the month, sales jumped by 34.5%, which was slightly below the average February to March seasonal spike of 35.4%. In spite of the improving economy and low mortgage interest rates, many would-be buyers are unable to clear the hurdle of affordability and tight inventories.
The median price across Southern California rose a little faster last month, increasing by 5.6% over the year (to $449,000) after posting a gain 3.7% in February and was the highest for any month since the median price was $462,000 in September 2007. Over the month, the median price was up by 4.4%. Although the median price has now risen on a year-over-year basis for four years it remains 11.1% below the peak median of $505,000 reached in mid-2007.
High demand and a lack of inventory continue to fuel price gains, but the composition of sales, weighted toward higher priced homes, has also had an effect. The share of homes priced above $500,000 was 41.8% in March, up from 38.6% a year ago, while the number of homes sold for $500,000 or more was up by 10.5%. Meanwhile, home sales in the more affordable price ranges (below $500,000) declined by 3.2%.
After four years of steady increases in the median price, it remains to be seen if higher prices will encourage more people to put their homes on the market and thus easing inventory constraints. On the new home front, sales remain near historic lows but are showing stronger signs of life. Sales increased by 24% during the first quarter of this year compared with the same period in 2015. (Kimberly Ritter-Martinez)
May 10, 2016: San Gabriel Valley Economic Outlook
Pacific Palms Resort & Conference Center: 1 Industry Hills Parkway, City of Industry, CA
Success in the 21st century requires having up-to-date data. The San Gabriel Valley Economic Partnership presents the only study specifically about the economy of the San Gabriel Valley, compiled by the Kyser Center for Economic Research, one of the most renowned economic research facilities in the nation. This special report provides the information business and community leaders need to understand opportunities for investment, business expansion, job creation and how to avoid pitfalls.
This is your opportunity to get the data first hand and ask questions of Economist Kimberly Ritter-Martinez and State Treasurer John Chiang.
June 16-17, 2016: Select L.A. International Investment Summit
JW Marriott at LA Live: 900 West Olympic Blvd., Los Angeles, CA 90015
The 2016 SELECT LA Investment Summit is Southern California’s premier international trade event that brings together global investors with business and governmental leaders from Southern California to facilitate and secure foreign direct investment (FDI), and gain exclusive insights on market trends and opportunities in the Los Angeles region.
SELECT LA offers the perfect environment to create and foster new relationships with individuals who are responsible for turning a conversation into an investment opportunity. Just as important is understanding the local processes and protocol for a diverse array of industries and verticals. World Trade Center Los Angeles will facilitate the conference and present many ways to get in the mix, such as table exhibits, one-on-one interactions, seminars and panels led by local and international innovators and executives.