The Southern California housing market continued its rebound in June, despite below-average sales and the highest mortgage rates in seven months. This year, the demand for homes surpasses the number of properties for sale due to a scarcity of inventory, resulting in rising prices. The median price of a home in Southern California was reported as $730,000 in June, only a 0.7% decrease from the previous year. The median price was just $20,000 away from reaching the all-time high of $750,000 in April 2022. Home prices in the six-county region have increased by 9% since the beginning of this year.
According to CoreLogic’s figures, home prices in Orange and San Diego counties rose by more than 3%. In Orange County, the median price reached a record-high of $1.059 million. However, the imbalance between buyers and sellers continues to put pressure on home prices, leading to a decrease in home sales. The number of transactions in June, 16,320, marked the lowest tally for any June in 35 years, down 24.3% from the previous year. This decline in sales has persisted for 19 consecutive months.
While the Southern California housing market differs from the national market, which has seen an increase in single-family home prices, the local market experienced a 1.3% decrease in median prices for single-family homes. Despite this, home prices in the region rose by 2.1% from May to June. However, affordability is becoming an issue for entry-level buyers, especially in the Inland Empire, as rising mortgage rates and prices impact purchasing power. Redfin reported that the minimum income needed to afford an entry-level home in the Inland Empire rose by 7.5% to nearly $105,000 per year.
Looking ahead, while mortgage rates are expected to remain high for the coming months, they are likely to decrease by the end of the year. CoreLogic projects that U.S. home price appreciation will continue to accelerate, reaching 6.8% by January 2024.
Here is a breakdown of median home prices and sales for June by county:
– Los Angeles County: Median price fell 2.4% to $830,000; sales were down 22.7%.
– Orange County: Median price rose 3.3% to $1.059 million; sales were down 16.6%.
– Riverside County: Median price fell 2.9% to $560,000; sales were down 25.7%.
– San Bernardino County: Median price fell 5.0% to $475,000; sales were down 28.7%.
– San Diego County: Median price rose 3.1% to $835,000; sales were down 24.5%.
– Ventura County: Median price rose 0.2% to $807,000; sales were down 35.6%.
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