There have been a rumbling of rumors lately about the
Southern California housing market showing
signs of a healthy recovery, and with May’s sales numbers out, the
rumors are confirmed! Home sales throughout the Southland (including Los
Angeles, Orange, Ventura, San Bernardino, and Riverside counties) show home
sales up 21% and the median home price up 5.4% from May 2011 (Los Angeles Times). Here at JWilliamsStaffing, we’re seeing LA staffing needs unseen since 2008, an additional
indicator of a recovery. Check out our current LA jobs for immediate hire.
What’s driving the increase?
While countless articles have stated the Southern California
real estate market is rebounding, this is the first time we have substantial
proof of a genuine recovery starting to take root. Multiple factors are
contributing to the uptick, including:
- Low interest rates: Interest rates are at rock-bottom, and buyers know they can’t stay this low for long. If there’s ever been a time to buy, it’s now, increasing demand for houses.
- Growing consensus that prices have hit rock bottom: Proof that the market has hit bottom is materializing in increased home sales and prices, driving more buyers into the market to get in before prices rise.
- Declining foreclosures: Foreclosures in May were down 19% from LY and foreclosure filings were down 4%. Additionally, foreclosures made up 26.7% of the resale market in May, the lowest level since December 2007. Fire-sale priced foreclosure homes have been a key reason home prices have been driven so low; it’s impossible for a homeowner to compete with the foreclosure next door that’s priced way below market value. With a decrease in foreclosure availability, market value is reestablishing itself at healthy levels, leaving room for profit for current homeowners.
The move-up market is back!
The move-up market is also starting to show signs of life again.
Previously, buyers were unable to move up to a bigger home because selling
their home at a profit was close to impossible. But with foreclosures down and
home sales up, the demand is back, granting current homeowners the benefit of
ownership we’ve missed so much: the opportunity to move up to a bigger home
once their house has appreciated in value. LA county lenders have confirmed
this, stating that they are seeing more customers with equity in a current
house looking for loans to move into a bigger house. Move-up buyers and sellers
keep the market active and are critical to a sustainable recovery.
Where will we see growth?
New-home construction. Builders are keen on the
real estate recovery and are positioning themselves to capitalize on the influx
of buyers it promises. While
foreclosures have practically obliterated new-home sales over the past 5 years,
new-home sales are now on the rise, and JWilliamsStaffing have the real estate
staffing needs to prove it. JoAnne Williams, chief executive of JWilliamsStaffing in Irvine, confirms that builders have added substantially more temp-to-hire positions
than last year, indicating increased permanent job creation in the future. Specializing
in LA staffing and staffing all over California, we have openings for immediate
hire. Visit our job postings
for openings near you, and apply online. 