In Southern California, home sales hit bottom in seven years

According to a report released on Thursday by CoreLogic, home sales in Southern California fell by 7,5% in October compared with the previous year, which led to a significant decline in the housing market.

Фото: Depositphotos

Decline in home sales has been going on for the third month in a row, and 19 193 houses that sold have been the lowest number in October since 2011, before the housing market reached a multi-year rise.

Aaron Terrazas, an economist at Zillow, noted in a recent statement that, although price cuts are becoming more common, they are still minor.

The median home price in six Southern California counties jumped 6,1% from last year to $525, according to CoreLogic. In Los Angeles County, the average price at which about half of the homes were sold increased by 000%, to $5,3. In Orange County, the average price rose by 595%, to $000; in Riverside County by 3,9% to $720; in San Bernardino by 000% to $6,1; Ventura by 380% to $000; and in San Diego by 3,4% to $330.

The S&P CoreLogic Case-Shiller Index is the best indicator of the price trajectory because it takes into account the differences in the types of homes sold in a given month. In September, the index showed that prices in Los Angeles were up 5,5% from the previous year. This figure has fallen every month since reaching a peak of 8,2% in April.

In San Diego County, price increases have dropped from 7,7% to 4% over the same period.

Many economists doubt that prices will decline compared to last year.

The slowdown in real estate sales did not affect only California. Buyers at the national level are so adjusting to mortgage rates, which have risen by almost one percentage point from a year earlier, as the Federal Reserve increases interest rates to prevent inflation.

On Thursday, the National Association of Realtors said that seasonally adjusted buyers entered into contracts to buy almost 3% less housing in October than in September. A year earlier, the contract was signed by 6,7%.

In response to this report, Mike Fratantoni, chief economist at Mortgage Bankers Assn., Called the current slowdown "healthy braking in the market."

“Housing prices have been rising outpacing wage growth for too long, especially in coastal markets,” he said in a statement.

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