Homebuying’s crash in Los Angeles and Orange counties pushed sales down 43% in a year to the slowest January on record.
Home purchases totaled 4,388 in the two counties — down 3,293 from January 2022, according to data from CoreLogic.
So, just how slow was it?
It was the worst January for sales in records dating to 1988. It was the smallest sales total for any month in CoreLogic’s database. The percentage sales drop ranked No. 2 largest over 35 years. Sales were 48% below the average January pace since 1988. Across the six-county Southern California region, sales also fell to an all-time low. Economic skittishness, especially soaring inflation, plus pricier home loans have frozen the housing market. Surging mortgage rates cut buying power by 28% in a year, making Southern California’s high home prices even more unaffordable.
Across the six-county Southern California region in the past year, sales fell 43% to 9,938 as the median sales price fell 0.1% to $670,000.
How cold? Let’s look at where the L.A.-O.C. cooldown was most intense, starting with January sales.
Los Angeles County had 3,097 closings, down 22% in a month and 44% lower in a year. Orange County had 1,291 sales – down 28% in a month and 41% lower in a year.
Next, consider how prices moved.
In Los Angeles County, the $763,000 median was down 1.5% in a month and 3% lower in a year. It’s also 12% off the $865,000 record high set in April 2022.
READ MORE: California home-price drops bigger than U.S. declines
Orange County’s $950,000 median was up 1.7% in a month and flat in a year. It’s also 10% off the $1,054,000 peak of May 2022.
Payment pain Pricier financing is clearly a culprit: The 30-year mortgage averaged 6.3% in January vs. 3.5% 12 months earlier.
My trusty spreadsheet tells me Los Angeles County buyers got an estimated house payment that’s 34% pricier – $3,766 per month on the $763,000 median vs. $2,806 on a year ago’s $786,000 home. And that assumes having $152,600 for a 20% downpayment.
In Orange County, buyers got a 38% bigger payment – $4,689 monthly on the $950,000 median vs. $3,392 on a year ago’s $950,000 home. The downpayment was $190,000 or 20%.
Single-family homes Sales: Los Angeles County’s 2,264 transactions were down 19% in a month and 40% lower in a year. Orange County’s 828 closings were down 19% in a month and 39% lower in a year.
Prices: Los Angeles County’s $800,000 median was down 4% in a month and 5% lower in a year. Orange County’s $1.1 million median was up 7% in a month and flat in a year.
Condos Sales: Los Angeles County had 658 sold — down 26% in a month and 52% lower in a year. Orange County had 353 sold — down 29% in a month and 49% lower in a year.
Prices: Los Angeles County’s $625,000 median was up 1% in a month and 3% lower in a year. Orange County’s $635,000 median was down 12% in a month and 9% lower in a year.
New homes Sales: Los Angeles County builder sold 122 units — down 46% in a month and 49% lower in a year. Orange County had 110 new residences sold — down 58% in a month and 11% lower in a year.
Prices: Los Angeles County’s $895,500 new-home median was down 3% in a month and 2% higher in a year. Orange County’s $1.28 million median was up 26% in a month and 1% higher in a year.
Builder share: In Los Angeles County, new homes were 3.9% of all closings last month compared to 4.4% 12 months earlier. Orange County’s 8.5% share last month compares to 5.6% 12 months earlier.
Note: January’s total sales include 53 closings where the type of home sold could not be determined by CoreLogic vs. 76 the previous month and 104 a year earlier.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
