Southern California home sales see record drop in prices, Hamptons not far behind
Southern California’s housing market saw a sharp decline in sales last month, as the median price hit a new high.
According to recent research from data analytics company CoreLogic, about 20,790 new homes and condos were sold during the month of June in San Diego, Los Angeles, Ventura, San Bernardino and Orange counties. That is a decline of 6.9 percent from the month prior and a drop of 8.8 percent from the same period last year.
New home sales in the Southern California counties notched their weakest June since 2014.
In the region, sales of newly-built homes were 46.9 percent below the average for the month since 1988.
“Despite … a healthy economic backdrop, the market was sluggish, suggesting many would-be buyers remained priced out or concerned about buying near a possible price peak,” Andrew LePage, a CoreLogic analyst, said in a statement.
Sales fell across homes of all prices, but were steepest for those with price tags of $1 million or more.
Meanwhile, new single-family home sales across the U.S. rebounded in June, rising 7 percent, according to data from the U.S. Commerce Department.
Out of all the California counties listed, Los Angeles experienced the sharpest drop – at 12.1 percent year over year.
Contributing some extent to the drop, CoreLogic noted, was that there was one less business day in the month to record deals.
Home prices in the area, meanwhile, continued to rise.
The median home price in Southern California during the month of June was a record $541,250, according to CoreLogic – up 2.5 percent from the month prior and up 1.2 percent year over year. Researchers noted that while prices hit a record, appreciation has been relatively modest.
Southern California isn’t the only luxury market experiencing a slowdown. Real estate in Long Island, New York’s pricey Hamptons area saw its worst second quarter sales in eight years.
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Manhattan is also seeing a slowdown, which some real estate experts have attributed to the $10,000 cap on state and local tax deductions implemented as part of the Tax Cuts and Jobs Act.
New York and California are two states where experts have said residents are looking to leave as their tax obligations mount. New Yorkers have favored the sunnier climate in Florida, while Californians have headed to Texas and Nevada.