Third lowest sales total for any month.It’s 41% below the average February sales pace dating to 1988.
Surging mortgage rates cut buying power by 25% in a year, making Southern California’s high home prices even more unaffordable. Economic skittishness and soaring inflation didn’t help. In the six-county Southern California region,Los Angeles County had 3,392 closings, up 10% in a month but 38% lower in a year. Orange County had 1,515 sales – up 17% in a month but 31% lower in a year.In Los Angeles County, the $765,000 median was up 0.3% in a month, but it’s 4% lower in a year.
Orange County’s $957,750 median was up 0.8% in a month, but it’s 2% lower in a year. It’s also 9% off the $1,054,000 peak of May 2022.Pricier financing is clearly a culprit: The 30-year mortgage averaged 6.3% in February vs. 3.8% 12 months earlier. My trusty spreadsheet tells me Los Angeles County buyers got an estimated house payment that’s 27% pricier – $3,772 per month on the $765,000 median vs. $2,968 on a year ago’s $800,000 home. And that assumes having $153,000 for a 20% downpayment.
In Orange County, buyers got a payment that’s 30% higher – $4,723 monthly on the $957,750 median vs. $3,635 on a year ago’s $980,000 home. The downpayment was $191,550 or 20%.Los Angeles County’s 2,344 transactions were up 4% in a month but 36% lower in a year. Orange County’s 922 closings were up 11% in a month and 30% lower in a year.Los Angeles County’s $830,000 median was up 4% in a month but 4% lower in a year. Orange County’s $1,070,000 median was down 3% in a month and 8% lower in a year.