Southern California Homebuying Slows in March, Prices Reach Record Highs: CoreLogic Data

Southern California Homebuying Slows in March as Prices Reach Record Highs

The latest data from CoreLogic reveals that Southern California homebuying took a hit in March, with only 14,176 completed sales across the six-county region. This represents an 8% decrease from the previous year and marks the second-lowest sales for a March since 1988. The median sales price also hit a new peak at $753,000, rising 1.8% in March and 8% over the past year.

Despite the sluggish sales, prices continued to climb, setting all-time highs in Orange, Riverside, and San Diego counties. The slow pace of homebuying in March was unexpected, as this month typically sees a surge in activity as winter transitions into spring. Affordability issues, driven by rising mortgage rates and high prices, pushed many potential buyers out of the market.

The increase in mortgage rates caught many analysts off guard, as rates averaged 6.82% in March, up from 6.64% in January and 6.54% a year ago. Homebuilders also experienced slow sales, with only 1,186 new homes purchased in Southern California in March.

The high prices and rates translated to a monthly house payment of $3,935 for a typical buyer in March, representing an 11% increase from the previous year. Limited housing options and affordability challenges kept many potential sellers from listing their homes, further exacerbating the supply shortage in the market.

Looking at homebuying by county, Los Angeles, Riverside, San Diego, Orange, San Bernardino, and Ventura all experienced varying levels of sales activity and price increases. The overall trend of sluggish homebuying is expected to continue, as pending sales in March were up only 3% from the previous year.

As the housing market in Southern California faces challenges related to affordability and supply, industry experts are closely monitoring the impact of these factors on future homebuying trends.