When Christmas lights go up, home sales typically go down as buyers and sellers take a break.
But this past Christmas, Santa delivered a giant lump of coal to Southern California’s housing market, as well as to real estate agents, lenders, escrow officers and anyone else who gets paid by the transaction.
Closed sales this past January — which reflect deals signed during the holiday season — fell to 9,938, the lowest number of transactions in records dating back 35 years, real estate data firm CoreLogic reported Tuesday, Feb. 28.
An average January has about 17,000 closings.
“It’s always going to be slow (during the holidays). But not that slow,” Compass agent Ken Osborn said Sunday at an open house in Long Beach. “That’s why we go back to the basics. Meeting people. Talking to people. Holding open houses.”
January’s sales tally was down 42.8% from January 2022, when homes were selling twice as fast. Sales have dropped from year-ago levels for 14 consecutive months.
Prices also have been dropping on a monthly basis, falling for eight straight months, CoreLogic figures show.
The median price of a Southern California home — or the price at the midpoint of all sales — fell to $670,000 in January, CoreLogic reported.
That’s down $90,000 from the price peak reached last spring, and down $500 from January 2022.
It was the first year-over-year price drop in almost four years.
A year ago, prices were up almost 13%, and most sellers were getting more than they were asking. Now, most homes are selling below their asking price and averaging more than eight weeks on the market, Redfin numbers show.
The doubling of mortgage rates last year was the key culprit for this housing turnaround.
Even though home prices are lower, the monthly mortgage payment increased 38% over the past year thanks to higher interest rates.
“Southern California housing markets continue to be challenged by high mortgage rates and eroded affordability,” said CoreLogic…
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