SoCal Home Sales and Median Prices in August

Southern California home sales increased over the year in August, rising by 8.0% to 21,352 units (new and resale houses and condominiums). Over the month, sales fell by 12.0% and were 18.0% below the average August price going back to 1988. The sales slowdown was seen across all home-types, counties and price ranges. While a July-to-August slowdown is typical, it may also reflect tighter inventories and/or declining affordability. Nonetheless, home sales have risen on a year-over-year basis for seven consecutive months, the longest stretch of gains since late 2012 into early 2013. Additionally, the decline between July and August followed two months of the highest home sales since August 2006.

The median price across Southern California increased by 4.3% over the year to $438,000 but was unchanged from July. The median price has now risen for 41 consecutive months on a year-over-year basis and was the second highest (coming in just behind June 2015), since October 2007 when it was $445,000. In Orange County, the median price is only 5.4% below its prerecession peak level. Home sales of $500,000 or more accounted for 40.5% of all sales in August, up from 38.2% a year ago.

Throughout 2015, Southern California’s housing market has continued to make progress. Contributing to improvements over the past year have been stronger job growth, rising household income, increases in homeowners’ equity, fewer homeowners in financial distress and low mortgage interest rates. Low inventories, declining affordability and the availability of credit continue to be constraints but anticipated wage gains and higher household incomes should drive accelerated housing market activity over the next couple of years.

 Source:  http://www.corelogic.com/solutions/configurable-real-estate-data-reports.aspx/