Southern California Homebuying Slows in March as Prices Reach Record Highs – CoreLogic Data

Southern California homebuying took a hit in March as rising mortgage rates and record-high prices deterred potential buyers. According to data from CoreLogic, the region saw 14,176 completed sales, marking an 8% decrease from the previous year and the second-lowest March sales since 1988. Despite the sluggish sales, median prices reached a new peak at $753,000, up 1.8% from the previous month and 8% from the previous year.

The combination of high prices and increasing mortgage rates led to affordability challenges for many buyers, pushing them out of the market. Homebuilders also experienced slow sales, with only 8.4% of all March sales coming from new homes.

The lack of available inventory further exacerbated the situation, with only 21,100 residences listed for sale in March. This limited supply, coupled with the affordability issues, kept many potential sellers from putting their homes on the market.

Geographically, Los Angeles, Riverside, San Diego, Orange, San Bernardino, and Ventura counties all experienced varying degrees of sluggish homebuying activity in March. Despite some month-over-month increases in sales, the overall trend was a decline in buying momentum.

With mortgage rates averaging 7% in April and limited inventory available, the Southern California housing market faces challenges in the coming months. As potential buyers grapple with affordability issues, the future of homebuying in the region remains uncertain.