The sales and home prices in Southern California appear to have been edging lower in the month of June over the month of May. This adds to all of the mounting evidence that a major housing slowdown is pulling the SoCal home values even lower every single day.
In fact, according to data that was recently released by DQNews, this marks the first month since this past January that Southern Cali’s housing market, which is usually ultra-competitive, actually saw a decline in median home prices.
It comes as a bit of a surprise to see this drop although it’s true that median prices peak in the summer. However, from May to June, median prices have increased on average by 1.78 percent over the last decade. The last time prices dropped from May to June was way back in 2010.
Month-over-month, LA home sales dropped, but then they plunged compared with a year ago. According to the Los Angeles Association of Realtors, 20,289 homes were sold in June, down from 27,143 in June of last year, which represents a decline of 25.3 percent. This decline follows a number of other indications that the housing market has slowed since mortgage rates spiked this year. In the last two years, they’ve risen from the low 3 percent range to the mid-5 percent range.
Now, approximately 29.6 percent of Los Angeles metro area homes on the market had price cuts in June, according to Redfin data. And, except for the three-month pandemic lockdown in 2020, June’s housing market sales pace has been the absolute lowest in the area since April 2008. According to the California Association of Realtors, the same trend has been observed throughout the entire state of California.
Bidding wars are less frequent these days and inventory is really on the rise, according to local real estate agents. As a result, an increasing number of home sellers are lowering their asking prices to attract buyers amid declining prices.