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High prices hurting SoCal home sales

Posted by The Aramco Group on Thu, Aug 25, 2016 @ 14:08 PM

Southern California home sales fell by double digits last month according to real estate data tracker CoreLogic. This is in contrast to the statewide outlook in which pending home sales increased a cool 3.5 percent from June to July.

The drop in the six southern counties' home sales can largely be attributed to significant price increases over the last year. July's median price for a Southern California home was on par with June which reached a nine-year high. Currently, the region has seen prices climb 6 percent from a year earlier to $465,000.0

Low affordability and limited housing inventory on the market will likely continue to plague Southern California buyers in the coming months. These issues continue to be the top concerns of realtors according to surveys conducted by the California Association of Realtors.

Meanwhile, conforming no-point 30-year fixed rates averaging 3.375 percent while the 15-year rate is near 2.75 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.