Sales in Southern California slowed significantly last month, likely a result of a tight market and record-high prices in the region.
The region saw its slowest June in four years for home and condo sales. The 22,706 homes that sold last month in six SoCal counties was 15 percent lower than the average sales since 1988 and down 11.8 percent year-over-year, according to a new report by CoreLogic.
There was also a 1.1 percent drop in sales between May and June, starkly lower than the 6.2 percent average gain between those months since 1988.
Conversely, the median sales price last month rose significantly, continuing a streak of rising prices since 2012. The median price was up 7.3 percent from June 2017 to $536,250, a record for the region.
The numbers were even more drastic in L.A. County, where year-over-year sales dropped 13.5 percent and the median sales price was up 8 percent to $615,000.
Still, the number of sales in L.A. County rose by 3.4 percent from May to June, while all other counties dropped, besides San Bernardino County, which saw a 1 percent increase.
Southern California has often served as a bellwether for the national market, which saw a 5.2 percent year-over-year increase in median sales price from June 2017 to last month.
Homebuilding has slowed nationwide amid high construction prices, and trouble finding qualified labor and available land. Nationally, home starts dropped by 12.3 percent from May to June, according to the federal government’s count. Mortgage rates are also rising along with prices, which could be causing some potential buyers to hold off on purchases.