SoCal sales hit the wall amid high prices and low inventory

Last month was the slowest June for sales in four years

TRD LOS ANGELES /
Jul.July 24, 2018 03:30 PM
(Credit: Orange County Register)

Sales in Southern California slowed significantly last month, likely a result of a tight market and record-high prices in the region.

The region saw its slowest June in four years for home and condo sales. The 22,706 homes that sold last month in six SoCal counties was 15 percent lower than the average sales since 1988 and down 11.8 percent year-over-year, according to a new report by CoreLogic.

There was also a 1.1 percent drop in sales between May and June, starkly lower than the 6.2 percent average gain between those months since 1988.

Conversely, the median sales price last month rose significantly, continuing a streak of rising prices since 2012. The median price was up 7.3 percent from June 2017 to $536,250, a record for the region.

The numbers were even more drastic in L.A. County, where year-over-year sales dropped 13.5 percent and the median sales price was up 8 percent to $615,000.

Still, the number of sales in L.A. County rose by 3.4 percent from May to June, while all other counties dropped, besides San Bernardino County, which saw a 1 percent increase.

Southern California has often served as a bellwether for the national market, which saw a 5.2 percent year-over-year increase in median sales price from June 2017 to last month.

Homebuilding has slowed nationwide amid high construction prices, and trouble finding qualified labor and available land. Nationally, home starts dropped by 12.3 percent from May to June, according to the federal government’s count. Mortgage rates are also rising along with prices, which could be causing some potential buyers to hold off on purchases.


Related Article

arrow_forward_ios
Los Angeles homes (Credit: iStock)

In LA’s residential market, inventory is up and sales are down, Q2 report shows

L.A. rents increased despite a national slowdown.

It’s still unaffordable to live in LA: report

LA County is seeing more listings

Resi listings are up in LA County, but buyers are staying home

Realtor.com Chief Economist Danielle Hale and San Francisco

In the Bay Area, “affordable housing” is relative

Malibu Real Estate Investments principals Bedros Oruncakiel and Kirkor Suri

Malibu spec mansion lists amid softening luxury market

Chandler Parsons and his property on Stone Canyon Road (Credit: Getty Images)

Durant wants out of Malibu, and now Chandler Parsons is listing his Bel Air mansion

CoreLogic's Andrew LePage and Orange County (Credit: Wikipedia)

SoCal housing market shows signs of life, with a caveat: report

Bridge Housing CEO Cynthia Parker and a rendering of the view from Walnut and Anaheim (Credit: SVA Architects)

Fully affordable complex set to rise in vacant Long Beach lot

arrow_forward_ios