Southern California Home Prices Experience Significant Decline in Early Winter

Southern California Home Prices Take Biggest 2-Month Dip in 12 Years

In a surprising turn of events, Southern California home prices experienced a larger-than-average decline during the early winter months of December and January. According to data from CoreLogic, the median selling price across the six-county region fell by a combined 4.6% to $705,000, marking the largest two-month drop in the past 12 years.

This decline comes at a time when mortgage rates were starting to decrease from their 2023 highs, economic and geopolitical conditions were uncertain, and there was a decrease in the number of existing homes listed for sale at the end of the year. Despite this dip, prices remain significantly higher than they were in January 2020, before the onset of the pandemic.

The drop in prices may have contributed to the region’s first year-over-year sales gain in 25 months, as buyers took advantage of more affordable housing options. However, the high cost of housing and mortgages has continued to keep many potential buyers on the sidelines, resulting in slower sales compared to previous years.

Looking ahead, historical data suggests that Southern California prices typically rebound in February and March, with an average price gain of 4.1% during these months. While the early winter price swings were not uniform across all counties, Riverside was the only county to see a slight increase in prices, while San Bernardino experienced the largest decline.

Overall, the housing market in Southern California remains dynamic and ever-changing, with prices expected to fluctuate in the coming months. Stay tuned for more updates on this developing story.