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LA-Orange County homebuying slumps 36% to slowest February on record

March 28, 2023

Homebuying’s slump in Los Angeles and Orange counties pushed sales down 36% in a year to the slowest February on record.

Sales of 4,907 homes in the two counties were down 2,765 from February 2022, according to data from CoreLogic.

So, just how slow is that?

It was the slowest February for sales in records dating to 1988.
Third lowest sales total for any month.
The year’s percentage sales drop ranked second-largest over 35 years.
It’s 41% below the average February sales pace dating to 1988.

Surging mortgage rates cut buying power by 25% in a year, making Southern California’s high home prices even more unaffordable. Economic skittishness and soaring inflation didn’t help. In the six-county Southern California region, sales fell 38% in the past year to 11,068. The median sales price fell 0.3% to $690,000.

Purchasing pause

Los Angeles County had 3,392 closings, up 10% in a month but 38% lower in a year. Orange County had 1,515 sales – up 17% in a month but 31% lower in a year.

And consider how prices moved.

In Los Angeles County, the $765,000 median was up 0.3% in a month, but it’s 4% lower in a year. It’s also 12% off the $865,000 record high set in April 2022.

Orange County’s $957,750 median was up 0.8% in a month, but it’s 2% lower in a year. It’s also 9% 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 February vs. 3.8% 12 months earlier.

My trusty spreadsheet tells me Los Angeles County buyers got an estimated house payment that’s 27% pricier – $3,772 per month on the $765,000 median vs. $2,968 on a year ago’s $800,000 home. And that assumes having $153,000 for a 20% downpayment.

In Orange County, buyers got a payment that’s 30% higher – $4,723 monthly on the $957,750 median vs. $3,635 on a year ago’s $980,000 home. The downpayment was $191,550 or 20%.

Single-family homes

Sales: Los Angeles County’s 2,344 transactions were up 4% in a month but 36% lower in a year. Orange County’s 922 closings were up 11% in a month and 30% lower in a year.

Prices: Los Angeles County’s $830,000 median was up 4% in a month but 4% lower in a year. Orange County’s $1,070,000 median was down 3% in a month and 8% lower in a year.

Condos

Sales: In Los Angeles County, 828 units sold — up 26% in a month and 41% lower in a year. In Orange County, 430 sold — up 22% in a month and 36% lower in a year.

Prices: Los Angeles County’s $637,500 median was up 2% in a month and 3% lower in a year. Orange County’s $725,000 median was up 14% in a month and 1% higher in a year.

New homes

Sales: Los Angeles County builder sold 160 units — up 31% in a month but 45% lower in a year. Orange County had 163 new residences sold — up 48% in a month but 21% lower in a year.

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Prices: Los Angeles County’s $883,750 new-home median was down 1% in a month but 5% higher in a year. Orange County’s $1,236,000 median was down 3% in a month but 30% higher in a year.

Builder share: In Los Angeles County, new homes were 4.7% of all closings last month compared to 5.3% 12 months earlier. Orange County’s 10.8% share last month compares to 9.4% 12 months earlier.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]

Orange County Register

News Details

LA-Orange County homebuying slumps 36% to slowest February on record

Purchasing pause

Payment pain

Single-family homes

Condos

New homes

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