SoCal Homes Sales Plummet To Levels Not Seen Since Housing Crisis

LOS ANGELES, CA — Home sales plummeted across Southern California last month, bringing totals down to levels last seen at the start of the housing crisis in 2007.

Los Angeles County home sales dropped by 20 percent in December, according to CoreLogic, the real estate information firm. At the same time, home prices barely budged, climbing by just 2 percent, a considerable slowdown from the average pace during the recovery. Sales fell all across Southern California with the steepest decline hitting Orange County where sales dropped by 26 percent.

Experts chalk the slowdown to a variety of factors namely, affordability after years of rising prices outpacing wage increases.

"Last month's sharp drop in home sales stands out in several ways," said Andrew LePage, research analyst with CoreLogic. "The number of homes sold was the lowest for any December in 11 years, since the onset of the last housing downturn in 2007. Sales fell about 8 percent between last November and December, whereas they normally rise significantly between those months.

"Additionally, the 20 percent annual decline in December sales was the largest for any month in more than eight years. This drop in activity reflects a variety of factors. Mortgage rates hit a 2018 high in November, affecting December closings, and stock-market volatility created an additional headwind in high-end markets. Meanwhile, some would-be buyers remain priced out or unwilling to buy amid concerns that prices have overshot a sustainable level."

The median price of a Los Angeles County home was $581,500 last month, up from $570,000 in December 2017. A total of 5,291 homes were sold in the county, down from 6,613 during the same month the previous year.

In Orange County, the median price was $708,500 last month, up 1.6 percent from $697,000 in December 2017. The number of homes sold dropped by 26 percent, from 3,054 in December 2017 to 2,260 last month.

A total of 15,781 new and resale houses and condos changed hands in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month, according to CoreLogic. That was down 8.2 percent from 17,192 in November, and down 20.3 percent from 19,800 in December 2017.

The median price of a Southern California home was $515,000 in December, down 1.5 percent from $523,000 in November and up 1.1 percent from $509,500 in December 2017.

City News Service and Patch Staffer Paige Austin contributed to this report. Photo: Shutterstock