The latimes continued their assault on the truth today. The number of homes for sale has a major impact on the number of sales. What we’ve had is an inventory problem, yet they make no mention of it here:
Southern California home prices and sales edged lower in June from the month before, adding to the pile of evidence that the housing slowdown is starting to pull home values lower.
The data, released Tuesday by DQNews, marks the first month since January that Southern California’s ultra-competitive housing market saw a decline in the median home price. The median is the price at which half the homes sold for more and half for less.
The region’s six-county median sale price was $750,000, down from $760,000 in May. However, a broader view shows that prices are still soaring compared with last June, when the median price was $679,000.
Still, the drop comes as a slight surprise. Although median prices tend to peak in the summer, the average increase from May to June was 1.78% over the last decade, DQNews data show. The last time prices fell from May to June was in 2010.
Home sales, meanwhile, slipped on a month-over-month basis but plunged compared with a year earlier, DQNews said. A total of 20,289 homes were sold in June compared with 27,143 the previous June — a decline of 25.3%.
Compare the La Jolla-to-Carlsbad numbers from previous months of June:
NSDCC June Active Listings and Sales
The 1.8 rate of sales-to-active-listings was about the same as it was in the last two years, which were considered the hottest on record! The precipitous drop in the number of listings has to be considered when examining the current market conditions.
The higher count of actives today (456) is a natural result of buyers wanting to wait-and-see where it goes. All we have to do is make it through the rest of the year while everyone gets acclimated to the higher rates.
The rental market will keep buyers interested in buying:
Housing prices need to drop >30% everywhere other than Coastal San Diego County to get potential sellers here to even consider a move. If interest rates are above 4%, very unlikely for current owners to leave their sub-3% 30-year fixed for another property. With the Fed raising interest rates to fight inflation, everyone will be staying put that already owns a property in the coastal region.
I’ve seen some on Zillow with over 100 Applications to rent in University City and Rancho Penasquitos