The median home price in Southern California has increased for 62 straight months. Experts say that streak will probably continue for at least another two years.
According to the Orange County Register, local economists say that home prices, especially for entry-level homes, have yet to reach their pre-recession peak after adjustments for inflation. Riverside and San Bernardino, for instance, have prices 18 percent below their previous highs.
A median-priced house currently costs about $580,000 in L.A. County and $750,000 in Orange County.
When factoring in a growing GDP and mortgage interest rates that are expected to stay low (less than 4.5 percent), home prices in Southern California could increase 6 percent a year for the next seven years, according to experts.
At 6 percent a year, the median home price could reach almost $700,000 in Southern California by 2023, $500,000 in Riverside County, $800,000 in Los Angeles County and nearly $1 million in Orange County.
Prices increased 6.3 percent in Southern California over the last year.
Before the recession, home prices rose year-over-year for 126 consecutive months in the region.