News Summary
In June, home sales in Southern California decreased, contrasting with a modest statewide uptick. Despite a 4% rise in statewide sales, local trends showed declines in key regions like Los Angeles and Orange Counties. However, median prices continued to climb. Market dynamics suggest potential buyer advantages, and improved sentiment hints at a possible market recovery in the second half of the year.
Los Angeles – Home Sales Decline in Southern California While Statewide Activity Sees Minor Boost
In June, home sales in Southern California experienced a downturn, contrasting with a slight increase in statewide sales following three months of decline. According to the California Association of Realtors (CAR), the number of closed escrow sales for existing, single-family detached homes in California reached 264,260 for June, marking a 4% increase from the previous month, when 254,190 homes were sold. However, this figure represents a slight decrease of 0.3% compared to June of the previous year.
The annualized sales figure suggests that if the pace seen in June continues throughout the year, factoring in seasonal adjustments, it could provide a more comprehensive outlook on home sales for 2025.
Regional Sales Trends
In Los Angeles County, home sales saw a decrease of 5.4% from May. Nevertheless, compared to June 2024, there was a slight gain of 1.1% in home sales. Orange County also reported a decline, with sales falling by 1.2% from May but witnessing a minimal increase of 0.1% compared to the same month last year.
Despite the reductions in sales volume, median home prices in both Los Angeles and Orange Counties increased. In Los Angeles County, the median sold price for a single-family home rose to $903,650 in June, up from $835,480 in May and $889,180 a year earlier. Meanwhile, Orange County’s median price climbed to $1.47 million in June, compared to $1.419 million in May and $1.45 million a year ago.
Statewide Price Overview
On a statewide level, however, the median home price dipped slightly, settling at $899,560 in June, down 0.1% from the previous month and the same period in 2024, where it was recorded at $900,720. Within California, San Mateo County reported the highest median price in June at $2.15 million, while Lassen County reported the lowest at $286,500.
Market Dynamics
CAR’s president indicated that an uptick in available properties combined with stabilizing price growth could grant prospective buyers enhanced negotiation power in the market. This shift might signpost a favorable environment for buyers, presenting opportunities to find homes at better terms.
Despite the current decline in home sales in Southern California, there are signs of improved housing sentiment which suggests that the market could rebound later in the year. This potential for recovery may pique the interest of prospective buyers as they assess their options in a gradually evolving market landscape.
Conclusion
As Southern California navigates these mixed sales results, local home prices continue to reflect regional disparities. With a noted increase in inventory and buyer negotiating power, homebuyers may find advantageous conditions in the latter half of the year, potentially reigniting interest in the housing market.
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Additional Resources
- Pasadena Now: Los Angeles County Home Sales Decline in June
- Wikipedia: Real Estate in the United States
- The Eastsider LA: Home Sales Decline in LA & Orange County in June
- Google Search: California Home Sales Trends
- Daily News: Los Angeles Homebuying Slumps 25%
- Encyclopedia Britannica: Real Estate
- ABC7: Homebuyers May Have Upper Hand in Housing Market
- Google News: Home Sales California
