CoreLogic: High Mortgage Rates Kept Southern California’s Annual Median Home Price Growth Flat in January

Only one of six counties in the region saw a year-over-year price gain in the first month of 2023

CoreLogic®, a leading global property information, analytics and data-enabled solutions provider,  released its monthly Southern California home sales report for January 2023. The report includes data for new and resale single-family homes and resale condominiums from six counties in the region: Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura.

Southern California’s median overall homes sales price was $670,500 in January 2023, down by 0.1% from one year earlier. The median sales price for a new home was $680,750 in January, up by 3.4% year over year, while resale homes ended the month at $705,000, down 1.1% from one year earlier. The median sales price for a resale condominium was $593,000, a decline of 1.2% from January 2022.

“High mortgage rates and the resulting eroded affordability continue to challenge Southern California housing markets, which drove home sales in the region to the lowest level since 2007,” said Selma Hepp, chief economist for CoreLogic. “The challenge is further exacerbated by a standoff between buyers and sellers, with the former expecting better deals and the latter still expecting elevated sales prices.”

“Due to these market dynamics,” Hepp continued “homes that are properly priced are selling quickly, while others linger on the market, which is helping to build Southern California’s inventory levels. As mortgage rates began to relax in early 2023, the region’s housing market has shown early signs of thawing, but any further improvement beyond the typical seasonal pick-up depends heavily on rates continuing to decline.”

Key Takeaways:

• Orange County posted Southern California’s highest median sales price for all tracked residential property types in January, at $950,000. It was followed by Los Angeles County ($763,000), San Diego County ($750,750), Ventura County ($725,000), Riverside County ($539,250) and San Bernardino County ($450,000).
• Riverside County was the only one in Southern California to post a year-over-year price gain, a modest 0.8%. The other five tracked counties saw annual price changes that ranged from 0% (Orange) to -2.9% (Los Angeles).
• Southern California home sales volume dropped significantly since January 2022, with all six counties recording declines ranging from 37.5% (San Diego) to 46.5% (San Bernardino).

The next CoreLogic Southern California Home Sales press release, featuring February 2023 data, will be issued in April 2023.

Source: CoreLogic

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About CoreLogic

CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

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