Southern California home sales and prices rise in July
Los Angeles Times
By Peter Y. Hong
...Southern Californians are shopping for homes again, optimistic that values have been beaten down about as low as they will go and triggering the highest sales levels in more than two years. A report released Tuesday shows a sharp rise in home purchases and an increase in median prices for a third straight month -- suggesting that the two-year decline in home values may finally be over...
...Despite strong demand in the mid- to low end of the market, another housing boom is unlikely, said Richard Green, director of USC's Lusk Center for Real Estate.
He said homes priced close to $500,000 aren't likely to move much higher in price because the buyers interested in those properties would not be able to obtain or afford larger mortgages. Those home shoppers would also be more likely to rent rather than buy if prices got too high because rents remain relatively low, Green said.
"I'm not expecting any big increase in house prices" in the mid-market, Green said. "We'll just get to where they'll stop falling, and maybe go up a little bit..."