Around the nation, home prices have increased faster than wages in the wake of the Great Recession—the Inland Empire is no exception to this trend.
Real estate data tracked and published by the international real estate consulting firm CoreLogic in its Home Price Insights Report, showed the median price for a home in San Bernardino County rose 5.7 percent to 295,000 and in Riverside County the median price rose 6.8 percent to $340,000.
According to the company’s Chief Economist, Dr. Frank Nothaft, “While national home prices increased 6.7 percent, only nine states had home price growth at the same rate of growth or higher than the national average because the largest states such as California, Florida and Texas are experiencing high rates of home price appreciation.”
Although this is good news for homeowners building equity in their properties, it is less than encouraging news for those seeking to purchase a home.
Consider the facts—in Southern California, median home prices have increased incrementally every month for a period of more than four years; and although no one is ringing alarm bells–some economists are cautiously optimistic that although the median price of housing may continue to rise—it is hoped that during 2017, they will do so at a slower pace.
A tempering of housing prices may be warranted particularly since interest rates on mortgage loans have also increased even as wages remain stagnant. These conditions limit the pool of potential home buyers not only in the inland region and California but in many other places in the nation as well.
CoreLogic ’s Home Price Insights report is considered by many as an industry standard. It utilizes the repeat-sale method to track increases and decreases in sales prices for the same home over time. By analyzing data on homes with two or more recorded sales transactions, these indexes provide what CoreLogic has defined as “accurate, constant-quality views of pricing trends.”