Southern California got clobbered during the housing downturn. But it’s still a great place to live, something that bargain-hunting investors have figured out.
Case in point: February was the best year for home sales in Southern California in six years, reported real-estate analytics company DataQuick.
But even though the SoCal housing market is improving, it’s anything but normal.
So-called “absentee” buyers—investors and second-home shoppers—accounted for a record 31 percent of home sales in the region last month.
And all-cash buyers snapped up more than a third of all homes for sale.
“Flipping”—buying a home and then quickly reselling it—is also back in vogue. The number of homes sold and then resold in six months jumped from about 4 percent in February 2012 to 7 percent last month.
This is making it tough for everyday buyers to get in on the action, as they get priced out and housing inventories fall to new lows.