Southern California home sales slipped back into reverse in August after recording the first gain in a year the previous month.
Sales across six Southern California counties totaled 22,284 last month, CoreLogic reported Wednesday, Sept. 25. That's down 1.2% in a year, a drop that cools hopes for a second-half home buying surge. CoreLogic tracks completed sales for all residences, existing and newly built.
August marks a modest homebuying reversal after July's 3.7% year-over-year sales gain, the region's first increase after 11 consecutive months of declines. And purchases overall have dipped, year-over-year, 19 times in the past two years.
One reason is likely sellers' refusal to budge on pricing. The Southern California median selling price was $535,000 — flat over 12 months. But the median selling price is not far from record heights, as the peak of $542,000 was set in June. That came as the regional median rose, year over year, for 83 consecutive months until March 2019.
Clearly, cheaper mortgage rates have not spurred a major surge in home buying to date. House hunters may be balking due to broader economic uncertainty, ranging from a slower local hiring pace to global trade friction. And it's not just housing: it's been a struggle to sell locally everywhere from local new-car dealers to hotels to Disneyland.
CoreLogic analyst Andrew LePage noted the sales chill is at least moderating. In the last six month, home sales ran 4% below the year-ago pace vs. an 11% dip in the previous six months.
"Some buyers no doubt remain parked on the sidelines, concerned about the possibility of buying near a price peak, and affordability remains a challenge for many," LePage said. "But for some, this year's drop in mortgage rates has been meaningful."
Another local housing scorecard, ReportsOnHousing, suggests strong results lie ahead. The monthly analysis of existing homes under sales contracts shows increased home buying in the six-county area as of mid-September. The report carries a big footnote: Not all deals turn into completed sales and builder sales aren't included.
Still, when looking at local home buying at the county level, you see a similar picture. August's completed deals show sales rose in half of the counties while prices increased in just three. But brokers' more forward-looking figures show new escrows increased across the entire region as listings fell in five of the six.
