Sales declines signal Southern California housing market shift

Southern California house sales slipped below year-ago levels in August for a fourth straight month, even though prices continued to climb, the California Association of Realtors reported.

Regionwide, sales fell 7.5% year-over-year, Realtor figures show. It was the biggest sales drop among California metro areas.

Sales were down in all four counties covered by the Southern California News Group, dropping 8.9% in Los Angeles County, 9.7% in Orange County, 6.6% in Riverside County and 4.3% in San Bernardino County.

The trend matches what's been happening statewide, as the cost of buying outstrips the capacity of more and more home shoppers.

California house sales dropped 6.6% in the 12 months ending in August, Realtor figures show.

If home buying were to continue at August's pace for a year, statewide sales of existing single-family homes would be below 400,000 for the first time in more than two years.

Southern California

"Uncertainty about the housing market continues to mount," said CAR President Steve White.

Homebuyers, White said, are reluctant to commit, fearing prices may have peaked.

CAR Chief Economist Leslie Appleton-Young said a market shift appears to be underway.

"We are seeing active listings increasing and more price reductions," Appleton-Young said.

The number of homes for sale have increased steadily for 8.5 months in Southern California, figures from Steve Thomas' Reports On House show, rising to the highest level in at least two years.

Statewide, house price gains decelerated, but not so in Los Angeles and Orange counties, where median house prices hit all-time highs.

The median price of a Los Angeles County house — or price at the midpoint of all sales — hit a record $607,490 in August, up 6.4% year over year. In Orange County, the median soared to a record $838,500, up 6.3%.

The median price of a Riverside County house was $400,750, down from the previous month but up 3.2% year-over-year. In San Bernardino County, the median was $290,000, also down from July but up 7.4% from August 2017 levels.

Tribune Content Agency
Purchase Housing markets Home prices California Association of Realtors California
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