Southern California Home Prices Hit Record High at $753,000 as Sales Plummet

Home prices in Southern California have reached a staggering record high of $753,000, according to a report by the Orange County Register. This marks an 8 percent increase from the previous year, with prices rising 1.8 percent in March alone. The surge in prices has set new records in Orange, Riverside, and San Diego counties.

Despite the soaring prices, home sales in the region have plummeted by 8 percent year-over-year, with only 14,176 completed sales of existing and new homes in March. This marks the second-lowest sales for a March since 1988, with only March 2008 seeing fewer sales during a global financial collapse.

The sluggish home buying trend can be attributed to pricier financing and stubbornly high prices, which have deterred potential buyers from entering the market. Interest rates for a 30-year benchmark loan have also increased to an average of 7 percent this month, up from 6.54 percent a year ago.

New home sales have remained flat, accounting for only 8.4 percent of all March sales in Southern California. The high home prices translate to a typical monthly house payment of $3,935, the fifth-highest on record for a March buyer in the region.

Despite the slowdown in sales, the number of homes listed for sale in Southern California has increased by 9 percent compared to the previous year. In Los Angeles County, there were 4,517 home sales in March, up 21 percent from the previous month but still the second slowest March since 1988. The median home price in the county rose by 6 percent to $850,000.

In Orange County, the typical home price surged by 17 percent to a record $1.15 million, while Riverside County saw a median home price increase of 8 percent to $577,000. San Diego County also experienced a 9 percent increase in the typical home price, reaching a record $865,000.

The current housing market in Southern California reflects a challenging environment for potential buyers, with high prices and limited inventory posing significant barriers to entry.