Typical of the late Spring season, sales within the Southern California housing market jumped between April and May, according to CoreLogic’s latest data brief. While the upward monthly shift is historically standard, May’s total sales were lower than the long-term average.
Encompassing Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, the number of home sales grew 5.6 percent since April, from 21,274 to 22,466. The real estate data firm says the average change in sales since 1988 between April and May is a 5.7 percent uptick.
CoreLogic
However, the number of sales within the month is low. Historically, the May average for homes sales in Southern California is 25,124 — May 2016 sales were 10.6 percent lower.
Less demand for new construction near LA
Newly built home sales were dramatically lower than the month’s historical average, showing a 48.3 percent differentiation in the report. The resale market, however, follows history closer with resales at just 5.1 percent below May average.
But CoreLogic says by eliminating the housing boom years of 2003 to 2006, resales in the Southern California housing market are much closer to their average pace, falling just 1 percent below.
“Although the resale pace is becoming more normal, the inventory of homes for sale remains unusually low in many markets, especially in the lower price ranges,” said Andrew LePage, research analyst at CoreLogic.
Sales grew 3.3 percent year-over-year overall, helping May inch closer to its regular pace.
How much are buyers paying?
The median price for Southern California homes shows 50 consecutive months of growth, according to CoreLogic. Median price grew 6.9 percent annually this May, reaching $459,500.
On a monthly trend, price grew 0.7 percent between April and May. May posted the highest single-month price since September 2007, when it was $462,000.
The high-end Southern California housing market is somewhat mirroring pre-recession levels. The number of homes selling over $500,000 encompassed 44.4 percent of all sales, the highest since 2007, when the market reached an equivalent share.
Year-over-year, the region’s share of sales in the $500,00-plus range rose 15.7 percent. Well above median, sales $800,000 and higher grew 14 percent year-over-year. Sales over $1 million grew 12.2 percent.
Toward the mid-range, sales under $500,000 dropped 5.5 percent since last May.
Orange County hits price peak
CoreLogic
The Orange County market had a strong month, with a 6.2 percent rise in homes sold. Last May, 3,400 homes sold, and 3,612 homes sold in May 2016.
Median price in Orange County rose 5.9 percent annually, reaching a new peak of $651,500. The previous all-time high of $645,000 was reported the month prior and also in June 2007.
