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What Bubble? Median LA House Price Up 30 Percent in June

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Happy DataQuick Day, everyone! The real estate research company released their data on the local housing market for June, and things are still going crazy. But maybe not for much longer? The number of houses sold last month in Southern California was down just over 6 percent compared to May, and prices were up 4.6 percent in a month and 28.3 percent in a year--a record year-on-year increase. Just looking at the LA County numbers, prices were up 30.8 percent over the year. But DataQuick president John Walsh points to three trends in today's data and thinks we're in for a bit of a cooling: the supply of houses for sale "has risen meaningfully," interest rates are up, and investors and cash buyers continue to back off, all of which could start to have an impact on home prices. We'll see soon enough, but in the meantime, here are some fun stats from June's numbers:

-- Prices for more affordable houses rose the fastest, with the price-per-square foot up 23.5 percent for the cheapest third of houses. Prices for the most expensive third were up 17.5 percent from last year.
-- But it's the expensive houses that were flying off the market, with the number of $800K+ sales up more than one third. Meanwhile, "activity dropped sharply in many supply-starved affordable markets."
-- Purchases by flippers and absentee buyers made up a smaller share of total sales in June than in May, but were still higher than June 2012.
-- Cash buyers accounted for 30.2 percent of all sales in June, down from May's share and June 2012's. But the median price they paid is up 34.5 percent from last year, to $320,000.
-- And for buyers who don't swim in pools of gold coins, the share of both jumbo loans and adjustable-rate mortgages are up, while government-backed FHA loans are down.
· Southland Home Sales Drop; Record Yr/Yr Gain for Median Sale Price [DQ News]