Southern California Home Prices Hit Record High in April
Southern California home prices have reached a new high in April, with the median selling price hitting a record $760,000. This surge in prices comes as homebuying in the region, which includes Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties, ran at its fastest pace in 19 months.
According to a report by CoreLogic released on Thursday, May 30, the $760,000 median selling price was up 2% from March and 7% from the previous year. The region saw a total of 16,751 completed sales of existing and new houses, townhomes, and condos, marking an 8% increase for the month and an 11% increase from the previous year. This sales tally was the highest since September 2022.
Despite the increase in purchases, this is still considered a relatively slow month for homebuying in Southern California. In fact, it was the fifth-slowest selling April in data dating back to 1988 and 27% below the average April sales over the past 37 years.
The stagnation in homebuying over the past two years can be attributed to affordability challenges, driven by rising prices and higher mortgage rates. The average 30-year mortgage rate in April was 6.99%, compared to 3.76% in March 2022 when the Federal Reserve began raising interest rates.
Only 15% of Southern Californians were able to afford a home purchase in early 2024, down from 24% two years earlier. The high prices have been fueled by a limited supply of listings, with Southern California having only 2.6 months worth of homes for sale in April.
The report also highlights the sales gains in different segments of the housing market, with newly constructed homes seeing an 18% increase in sales, existing condos up by 14%, and existing houses up by 9%. Prices in five of the six local counties reached all-time highs in April, with Orange County leading the pack with a record $1.2 million median price.
Overall, the housing market in Southern California continues to face challenges in terms of affordability and supply, making it difficult for many potential buyers to enter the market.