Southern California Home Sales Slump Continues in June

The housing market in Southern California continued to struggle in June, with home sales remaining subdued for the second consecutive month. The California Association of Realtors reported a 0.8% decline in sales from May and a 2.7% drop from the previous year, largely influenced by high mortgage rates.

The 30-year fixed mortgage rate stayed above 7% throughout most of May, impacting sales that opened escrow during this period. The sales pace has now stayed below the 300,000 threshold for the 21st consecutive month, with year-to-date sales down by 0.5% compared to last year.

Despite the sluggish sales, there is hope for a potential market upswing in the latter half of the year. CAR President Melanie Barker anticipates this upswing due to decreasing interest rates and increasing home availability.

In terms of pricing, June saw a slight decrease in the statewide median home price, dipping 0.8% from May to $900,720. However, this still marked the third consecutive month above the $900,000 mark. California’s median home price was up 7.5% from June of the previous year, representing the smallest annual increase since January.

Regional price details showed that in Los Angeles, the median home price slightly decreased from the previous month to $835,000 in June, but showed a 7.7% increase from the previous year. Orange County’s median home price rose to $1.45 million, up 15.1% year-over-year.

Overall, the housing market in Southern California is facing challenges, but there is optimism for a potential turnaround in the coming months. With interest rates decreasing and more homes becoming available, the market may see an increase in momentum in the second half of the year.