Price of homes in Riverside County rises 23% in March

The median price of a home in Riverside Countyincreased by 22.5 percent while the number of homes sold in the county droppedby 6 percent in March, compared to the same month a year ago, a real estateinformation service reported today.

According to DataQuick, 3,532 homes were sold in Riverside County lastmonth, compared to 3,756 in March 2012, while the median price was $245,000, upfrom $200,000 during the same time period last year.

A total of 20,581 new and resale houses and condos changed hands in LosAngeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties lastmonth, according to DataQuick. Sales usually jump between February and March,and last month’s figure was up 29.1 percent from the month before andrepresented a 3.1 percent increase from March of last year.

The median price for a Southern California home was $345,500 in March,up 8 percent from $320,000 reported in February and up 23.4 percent from$280,000 in March 2012. According to DataQuick, last month’s median price wasthe highest since July 2008.

“It’s remarkable how much the housing scene has changed in a year,”DataQuick President John Walsh said. “At this point in 2012 there were folkssitting on the market’s sidelines waiting to be sure the recovery was real.”

A gradual shift occurred as the economy picked up and mortgage ratesfell to historic lows, which coincided with increased demand, especially inmiddle and higher-priced neighborhoods where activity had been sluggish forseveral years, Walsh said.

“Price measures continue to rise for two simple reasons,” Walsh said.”First, demand for homes has risen at a time when the available supply isunusually low. Prices have had nowhere to go but up in many areas. Second, thegains are especially high right now because of the change in market mix: Salesof lower-cost homes have fallen at the same time activity in the higher priceranges has risen.”