Home prices rise on lack of inventory

Southern California home sales rose 3.6 percent in October year over year, the highest number for that month since 2012.

The median price of a home in the six-county region last month, $495,000, was up 6.5 percent compared with October 2016, according to data released Wednesday by CoreLogic in Irvine.

That was the 67th consecutive month that the median price in Southern California has gone up. The last 41 increases have been by single digits.

CoreLogic defines the Southern California market as the Inland Empire along with Los Angeles, Orange, San Diego and Ventura counties.

Overall, Southern California housing remains plagued by a lack of inventory – not enough houses are being built – and a rise in employment. Those factors are creating a demand that is driving up prices, making things especially difficult for first-time buyers, said Andrew LePage, research analyst wire CoreLogic.

“Inventory has been tightest in many of the more affordable areas where price increases have been relatively high, and new-home construction – the region’s traditional pressure-release valve – hasn’t offered much relief.” LePage said in a statement. “Although new home sales are up about 2 percent this year through October, sales below $500,000 are down about 11 percent from the same 10-month period last year.”

In Riverside County, sales were up 5.3 percent from October 2016, and the median price – $358,000 – was an increase of 6.9 percent.

San Bernardino County sales were up 12.4 percent while the median price of $320,000 represented a 12.3 percent increase from one year earlier, according to CoreLogic.