Southern California home sales hit levels worse than Great Recession

Homebuying activity in Southern California has declined to its second-slowest pace in over two decades, with sales across six counties running 33% below the average annual pace recorded since 2005. Data indicates that the 12-month period ending in July saw a sales pace 3% slower than the height of the 2007-2008 financial crisis.

Prospective buyers are currently facing a combination of near-record prices and elevated mortgage rates. The median home price reached $815,000 in July, which is nearly at the region's all-time peak. This pricing has significantly impacted affordability; for instance, only 15% of households in Orange County could afford a home this past spring, while affordability in Los Angeles and San Diego counties stood at 17%.

In Orange County specifically, inventory has seen a notable increase, rising 61% compared to the previous year. While buyer demand remains relatively steady, more homes are sitting on the market longer and fewer are selling above the asking price. Although interest rates have seen slight fluctuations, the high cost of monthly housing payments—which have increased by an estimated 72% over five years—continues to present a barrier to homeownership.