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SoCal Home Prices Flat, Sales Fall in August
Home sales in Southern California fell in August and prices were flat, according to the latest research by CoreLogic. That reversal came after sales ticked up in July, the first gain in a year, which was attributed to a drop in mortgage rates.
Sales across six SoCal counties totaled 22,025 in August, a drop of 1.2% from a year ago. Total home sales in August 2019 were the lowest for that month in four years, since August 2015 when 21,263 homes were sold.
In August 2019, sales of newly-built homes (detached houses and condos combined) were 42.7% below the August average since 1988, while resales (detached houses and condos combined) were 10% below the long-term August average. Ignoring the 2003-2006 housing boom that was fueled by risky home loans, August 2019 resales were 5.5% below the sales average for August.
CoreLogic’s Andrew LePage pointed out there’s been a thawing of the sales chill though. Home sales have run 4% below the year-ago pace over the past six months. The previous six months there was an 11% drop.
LePage says, “Some buyers no doubt remain parked on the sidelines, concerned about the possibility of buying near a price peak, and affordability remains a challenge for many. But for some, this year’s drop in mortgage rates has been meaningful.”
Meanwhile, the median selling price hit $535,000, which was essentially flat over 12 months, though not far off the record high set in June at $542,000.
“The region’s median sale price has been close to flat on a year-over-year basis all year, dipping as much as 0.4% in March and rising as much as 1.9% in July,” LePage said. “One of the reasons last month’s median was unchanged from a year ago is because of a change in market mix, meaning a shift toward a higher share of sales occurring in some of the region’s more affordable areas.”
Total Homes Sold/Median Price for Select Southern California Counties
(Reflects total home sales)
| County | Homes Sold August 2018 | Homes Sold August 2019 | Percent Change | Median Sale Price
August 2018 |
Median Sale Price
August 2019 |
Percent Change |
| Los Angeles | 7,506 | 7,063 | -5.9% | $615,000 | $619,000 | 0.7% |
| Orange | 3,317 | 3,217 | -3.0% | $727,000 | $719,500 | -1.0% |
| Riverside | 3,735 | 3,984 | 6.7% | $380,000 | $390,000 | 2.6% |
| San Bernardino | 2,982 | 2,906 | -2.5% | $328,500 | $346,000 | 5.3% |
| San Diego | 3,765 | 3,835 | 1.9% | $584,500 | $584,000 | -0.1% |
| Ventura | 979 | 1,020 | 4.2% | $586,500 | $599,000 | 2.1% |
| SoCal Total | 22,284 | 22,025 | -1.2% | $535,000 | $535,000 | 0.0% |
Source: CoreLogic
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Sale/Acquisition
