LOS ANGELES (CNS) – The median price of a single-family home in the Los Angeles metro area was $780,000 in July, down from $800,000 in June, but still up from $731,000, as interest rates and higher home prices dampen demand. A year ago, the California Association of Realtors reported Wednesday.
The month-on-month decline represents a 2.5% decline, but the year-on-year data shows a 6.7% increase, according to CAR data.
Meanwhile, Los Angeles County trended in the same direction last month, with the median price dropping to $846,320 — down from $860,230 in June but up from $809,750 in July 2021. The year-on-year increase was 4.5 percent.
“As the home sales market responds to recent increases in interest rates, and pending sales suggest the market will remain soft in August,” CAR Vice President and Chief Economist Jordan Levin said in a statement.
“The rate of sales decline is expected to slow in the coming months, but as rates continue to stabilize, market volatility will begin to decrease and supply conditions will become more normal.”
The median price in Orange County was $1.231 million in July, down from $1.265 million in June, but up from $1.09 million in July 2021. Those numbers represent a 2.7% month-over-month decline, but a 12.9% year-over-year increase.
The average number of days it took to sell a single-family home in the Los Angeles metro area was 14 in July, up from 11 in June and eight in July 2021.
In Los Angeles County, the average number of days a home was on the market was 13 in July, up from 10 in June and eight a year ago.
In Orange County, the average time on the market was 13 days in July, up from nine in June and seven in July 2021.
San Diego County’s median home price dropped from $950,000 in June to $930,000 in July. In July 2021 it was $860,000.
Riverside County’s median price was $625,000 in July, down from $645,000 in June but up from $570,000 in July 2021.
Statewide, the median home price was $833,910 — down 3.5% from June but up 2.8% from July 2021.
Existing single-family home sales totaled 295,460 statewide in July at a seasonally adjusted annual rate — down 14.4% from June and down 31.1% from July 2021.
Statewide, July home sales fell below the annualized benchmark of 300,000 for the first time since May 2020, according to CAR.
July marked the fourth consecutive monthly decline and the 13th straight annual decline, CAR said.
The annual figures represent what the total number of homes for sale in the state will be in 2022 if sales maintain July’s pace. Realtors adjust the figure to take into account current conditions that may affect home sales, according to CAR.
Overall, year-to-date home sales fell 13.6 percent in July.
The leaders in home prices continue to be in the San Francisco Bay Area, with median prices in July at $1.965 million in San Mateo County, $1.740 million in Santa Clara County, $1.72 million in Marin County and $1.7 million in San Francisco County.
“High home prices and rising interest rates during the homebuying season have pushed housing affordability to a 15-year low, which has also stifled home sales,” said Otto Katrina, president of Bay Area Real Estate. Broker.
“However, buying opportunities remain for those on the sidelines in the coming months as more listings become available, competition cools and rates begin to stabilize.”
Other key points noted in CAR’s July Consumer Home Sentiment Index survey include:
- 76% of respondents believe that California’s overall economic situation will not improve in the next 12 months.
- 81% believe that interest rates will not fall within a year;
- 16% think it’s a good time to buy a home – up slightly from 14% in June and down slightly from 17% last July.
- 60% believe it’s a good time to sell homes, pushing the housing sentiment index to 59, significantly lower than the index of 71 in July 2021.