San Bernardino County, land of the most affordable housing in Southern California, bucked a regional trend of slowing home appreciation in May, seeing its year-over-year prices rise 10.5%.
The median price for a single-family home sold in San Bernardino County last month was $315,000, up from $285,000 in May of 2018, according to a report by the California Association of Realtors. In Riverside County, the median price was $420,00, an increase of just 2.5% year-over-year.
Across the rest of Southern California, prices last month eked out small gains: In Los Angeles County the median price of a single-family home was $538,480, a 0.5% boost from 2018; in Orange County it was $845,000, an increase of 0.8% and in San Diego County it was $650,000, a 1.6% uptick.
Oscar Wei, a senior economist for CAR, said the reason for the price surge in San Bernardino County was likely tied to interest rates, which since January have dropped almost a full percentage point to slightly more than 4% for a 30-year fixed-rate mortgage.
That could have given sellers in San Bernardino County the incentive to add a few thousand dollars to their asking prices, he said.
"Buyers are willing to pay a little more when the interest rates are down around 4%," Wei said. "So that allows the sellers to be a little more flexible,"
He expects the county's rate of home appreciation to dip slightly to 5% to 7% in the coming months.
Houses in San Bernardino County spent a median of 28 days on the market before selling in May, a sharp drop from 35 days a month earlier. Riverside County homes remained unsold for 32 days.
The buying pace in coastal counties was significantly faster. In Orange, Los Angeles and San Diego counties, homes sat on the market for an average of 18 days, according to CAR.
David Gonzalez, a real estate agent with an office in Rancho Cucamonga, said many buyers have "gotten off the fence" in 2019. Also, some are potential buyers that are coming east from the coastal counties and are competing with local residents.
He cited Rialto, a city with robust activity especially north of Interstate 210. Along with buying interest, he said fresh retail establishments are opening there.
"That shows that that area is growing," Gonzalez said. "In the past, Rialto hadn't been considered the most desirable place."
