The median price of homes in the San Fernando Valley hit $460,000 in April, the highest in five years, according to the Southland Regional Association of Realtors.
The Van Nuys trade group blamed a lack of supply, according to the San Fernando Valley Business Journal.
There were just 1,117 Valley homes on the market last month, which amounts to a 1.1-month supply, the newspaper reported.
“No doubt prices continue to surge higher due to years of pent-up demand and today’s limited inventory,” said Sharon Barron, president of the association, in a statement.
At the same time, home flipping is again on the rise, according to KCBS2.
Home flipping refers to the buying and renovating of a home with the intention of selling for a profit due to low interest rates and the increasing strength of the housing market.
Property Radar, a real estate data firm, reports that the number of homes flipped within the last six months, has reached it’s highest level since 2005.
In California alone, 6,000 homes were reportedly flipped between January and April of this year.
“The demand is so great, the supply is low,” Troop Real Estate’s Robin Karcich told KCBS2. “So everybody is getting multiple offers."
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