Record Low Home Sales in Los Angeles and Orange Counties for January

The housing market in Los Angeles and Orange counties hit a record low in January, with homebuying crashing by 43% compared to the previous year. According to data from CoreLogic, only 4,388 homes were purchased in the two counties, marking the slowest January on record.

The economic uncertainty, particularly due to soaring inflation and higher mortgage rates, has frozen the housing market, making Southern California’s already high home prices even more unaffordable. Surging mortgage rates have reduced buying power by 28% in just one year.

Across the six-county Southern California region, sales fell by 43% to 9,938 homes, with the median sales price remaining relatively flat at $670,000. In Los Angeles County, there were 3,097 closings, a 44% decrease from the previous year, while Orange County saw 1,291 sales, a 41% drop.

The median home price in Los Angeles County fell to $763,000, down 3% from the previous year and 12% lower than the record high set in April 2022. In Orange County, the median price remained flat at $950,000, but it is still 10% lower than the peak reached in May 2022.

The impact of pricier financing is evident, with the average 30-year mortgage rate jumping to 6.3% in January from 3.5% a year earlier. This has resulted in significantly higher monthly payments for buyers, making homeownership even more challenging.

The slowdown in the housing market was also reflected in sales of single-family homes, condos, and new residences, with significant decreases in transactions across the board. Despite the challenging market conditions, new home prices in Orange County saw a 26% increase in median price in a month.

Overall, the housing market in Los Angeles and Orange counties is facing unprecedented challenges, with buyers struggling to afford homes due to high prices and rising mortgage rates. The record low sales in January highlight the need for solutions to make homeownership more accessible in Southern California.