Describing the dire effect of the coronavirus crisis on the housing market, data released Tuesday showed Southern California home sales fell 26.6% in April compared to the previous month, while year-on-year sales fell 31.5%.
Data from DQNews reflects housing transactions that were closed last month, which means many escrow opened right before or after home stay restrictions conducted in California in March.
This aspect of the real estate industry is considered important by California leaders, but with restrictions that more or less kill traditional open houses.
Sales fell across the board in April, with the pandemic disrupting and negating many deals in escrow, but house prices continue to see marginal gains from the previous year:
- In Los Angeles County, average home prices rose 3.8% to $ 630,000, while sales dropped 35.2%.
- In Orange County, average home prices rose 2.7% to $ 755,000, while sales fell 33.8%.
- In Riverside County, average home prices rose 5.8% to $ 412,500, while sales dropped 30.6%.
- In San Bernardino County, average home prices rose 5.4% to $ 353,000, while sales dropped 20.9%.
- In San Diego County, average home prices rose 4.3% to $ 594,500, while sales dropped 30.6%.
- In Ventura County, the average home price increased 2.6% to $ 600,000, while sales fell 34.6%.
The fear of the unknown has prompted many prospective sellers to push the pause button on prospective offers, while mortgage credit has tightened despite historically low interest rates. The so-called jumbo mortgage – a loan greater than $ 765,600 – has evaporated because of lenders’ concerns over the severity and duration of the COVID-19 outbreak.
High-end markets, especially in Los Angeles County, are a different story. Pandemic has done little to slow sales of north of $ 5 million in LA County. Even though inventory is down, buyers are taking advantage of the current market (and low interest rates) and utilizing private banks that prioritize big shoppers to do so.
Market bite
San Bernardino County continues to see an increase in new home transactions, with 249 sales in April, up 41.5% from the same month a year earlier (176). The district had 323 new home sales in March. New home sales in San Diego County (235) rose 8.3% year-on-year.
Overall, condominium sales throughout Southland fell 31.7% from March and 35.5% from a year earlier. Average selling prices for condos, however, increased 5.6% year-on-year, including a 13.2% increase in Riverside County.
Both the Orange and San Diego regions remained stable with average peak selling prices of $ 755,000 and $ 594,500 respectively, the same as the previous month.
