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

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.

Historically, December and January are known for price dips as buyers tend to hold off on making home purchases during the holiday season. However, this year’s decline was more significant than usual, with economic and geopolitical uncertainties playing a role in the market.

Despite the recent price slip, prices in Southern California remain up 33% from January 2020, just before the onset of the coronavirus pandemic. The high cost of housing and mortgages has kept some buyers at bay, resulting in slower sales activity in January.

Looking ahead, there is optimism that prices will pick up in the coming months. Since 1988, February and March have typically seen an average 4.1% price gain, the largest increase of the year. Additionally, the early winter price swings were not uniform across all counties in the region.

Riverside County was the only area to see a gain, with prices up 0.2% compared to the average dip. San Bernardino County experienced the biggest drop, while San Diego, Los Angeles, Ventura, and Orange counties also saw declines in median home prices.

Overall, the housing market in Southern California remains dynamic and responsive to various factors. As the region navigates through economic uncertainties, buyers and sellers alike will need to stay informed and adaptable to market conditions.