Housing Sales Slow, Prices Jump

Southern California’s housing market sent out mixed signals during October, with flat sales but a noticeable rise in prices.

Sales of houses and condominiums in the six-count region – the Inland Empire plus Los Angeles, Orange, San Diego and Ventura counties – were up an insignificant 0.3 percent year-over-year, according to data released Tuesday by CoreLogic in Irvine.

During the same period, the median price of a home went from $435,000 to $465,000, an increase of nearly seven percent.

Compared with September, sales were down 6.3 percent and median prices were essentially unchanged, up only 1.1 percent, CoreLogic reported.

The report is significant for several reasons: it’s the last study for a while that won’t include fallout from the November election, and it shows a market that’s performing “well below- average” because of high prices, said Andrew LePage, research analyst with CoreLogic, in a statement.

Locally, home sales compared with October 2015 were up nearly two percent in San Bernardino County but were flat in Riverside County.

Median prices, however, performed well: $335,000 in Riverside County, up 8.1 percent, and $285,000 in San Bernardino County, a year-over-year jump of 9.6 percent, according to CoreLogic.

Southern California’s housing market is slowing down but in general remains healthy, said Jay Prag, professor of economics and finance at the Drucker School of Management at Claremont Graduate University.

“It’s definitely leveling out,” Prag said. “The state’s job market has gotten better, but interest rate are up and they will probably keep going up. But it’s not time to panic. We’re a resilient economy.”