Prices Inching Up as Fall's Arrival Cools Activity
Los Angeles Business Journal
By Joel Russel
Home prices rose 7 percent on average in Los Angeles County last month, despite a slump in sales activity as the summer drew to a close...
...Compared with August, the September numbers represent a 1 percent gain in home price; there was a month-to-month decrease of 5 percent in sales activity.
Gary Painter, associate professor at the USC Lusk Center for Real Estate, explained the higher prices and slower activity in terms of people's motivation for selling their home. During the housing crash, the market was flooded with foreclosed properties, resulting in depressed prices.
"Over time, people start selling for more traditional reasons – moving up to a bigger home, a job switch or better schools," Painter said. "As more non-distressed homes come on the market, we will see higher prices."...