Due to the pandemic crisis, data released from DQNews last week shows that Southern California home sales dropped by 26.6% in April compared to a month earlier while year-over-year sales were also down 31.5%. The data reflects the residential transactions that closed last month, which means that many opened escrow right before or at the beginning of the stay-at-home restrictions placed on California in March. The real estate industry was deemed essential by leaders of California, however the restrictions prevented the traditional open house. Sales were down in April due to the pandemic negating and disrupting many deals in escrow, however home prices continued to rise from the previous year.
- The median home price rose 3.8% to $630,000, however sales dropped 35.2% in Los Angeles County.
- The median home price increased 2.7% to $755,000, which was the same for March, however sales were down 33.8% in Orange County.
- In Riverside County, the median home price climbed 5.8% to $412,500, however sales were down 30.6%. There was an increase of 13.2% of condominium sales in the county.
- In San Bernardino County, the median home price rose 5.4% to $353,000, however sales were down 20.9%.
- In San Diego County, the median home price rose 4.3% to $594,500, which was the same for March, however sales dropped 30.6%.
- The median home price increased 2.6% to $600,000, however sales fell 34.6% in Ventura County.
Condominium sales across Southern California were down 31.7% from March and 35.5% from 2019, however the median sale price for condos has increased 5.6% year-over-year.
Fear of the unknown future and tightening mortgage credit has kept potential sellers from putting their houses on the market even with extremely low interest rates. Jumbo mortgages, loans greater than $765,600, have essentially disintegrated due to lenders’ concern over the duration and severity of the pandemic. However, the high-end market with sales of more than $5 million has not slowed since the pandemic, especially in Los Angeles County. Even with a low inventory, high-end buyers are taking advantage of the current market with low interest rates and utilizing private banks that give them priority.