Southern California Home Sales Fall to 20th Lowest Monthly Tally Since 1988, Prices Rise 4.3%
The Southern California housing market continues to face challenges as high mortgage rates and low inventory impact home sales. In October, home sales fell to 13,293 transactions, the 20th lowest monthly tally since 1988, while home prices rose 4.3% to a median of $735,000.
The increase in home prices, combined with the highest mortgage rates in decades, has pushed monthly house payments for a typical Southern California home to a record $4,160. In Orange County, the median home price reached an all-time high of $1.085 million, up 14% from the previous year.
Despite the rising prices, home sales in the six-county region dropped 8% from the year before, marking the 23rd consecutive month of annual declines. The lack of inventory and affordability challenges have contributed to the decrease in sales, with fewer buyers able to afford the high prices.
Experts predict a slight rebound in the market in 2024 if interest rates decrease as expected. However, the real estate industry is feeling the impact of the slow transaction volume, with consolidation on the horizon as brokers and others in the industry face challenges.
Overall, the Southern California housing market reflects national trends, with low inventory, high mortgage rates, and rising prices affecting buyers and sellers alike. The future of the market remains uncertain, but experts are hopeful for improvements in the coming year.