California: Home Price Gain of 18.6% Ends Streak

DataQuick Information Systems reports an 18.6 percent gain in Southern California's median home price to $439,000 during the 12 months ended in March. This marks the first time in 14 months that the median price has not posted year-over-year gains of at least 20 percent. However, experts contend that the market remains healthy and that a busted bubble is not likely in the immediate future. Sales in the region hit a near-record high of 32,674 over the same time span, attributable to robust demand, still-low mortgage rates, and a lean supply of properties on the market. The median price shot up 34.8 percent in San Bernardino County, 26.3 percent in Riverside County, 17.3 percent in Los Angeles County, and 16.1 percent in Ventura County. Meanwhile, San Diego County's March tallies are thought to be indicative of the region's future. The county recorded a 12.5 percent gain in the median home price and a 5.5 percent decline in sales. This leads many local housing experts to believe that the Southern California market will not crash, making a soft landing instead.