Southern California’s homebuying chill continues.
Across the six-county region, October had 15,281 closed sales of houses and condos, both existing residences and newly constructed, according to real estate tracker Attom. It was the fifth-slowest October in 21 years.
This broad measure of local homebuying activity is up a slim 0.2% in a year, but it’s still 23% below the month’s average since 2005.
House hunters may be modestly encouraged by mortgage rates off their recent peaks. However, the reasons behind declining financing costs – economic uncertainty – aren’t exactly motivating many folks to close a sale.
Taking a longer view, Southern California buyers are somewhat more active.
In the past year, sales totaled 168,881 through October – up 2% compared with the previous year. Yet that’s 28% below the 21-year average.
Price is wrong
Southern California house hunters are balking as prices remain lofty.
October’s Southern California median selling price of $810,000 was up 0.6% in a year and remains only 3% – or $22,000 – below the $832,000 high set in June.
Even a significant cooling of price appreciation isn’t inspiring house hunters. Prices are up 11% over the past three years, after surging 36% over the previous three. That boom was driven by the pandemic’s economic gyrations, including historically low mortgage rates and a thirst for bigger living spaces.
In early 2022, the Federal Reserve began raising the interest rates controlled by the central bank to address the worst inflation in four decades. By 2025, the Fed changed its approach and started lowering rates to support a wobbly economy.
Who can buy?
It’s all about the house payment.
Mortgage rates averaged 6.4% in the three months ended in October. That’s flat in a year but a full percentage point off from the most recent high 7.4% in November 2023.
Combine those rates and recent pricing patterns, and you see that October’s typical Southern California buyer got an estimated $5,065 monthly mortgage payment. This cost is up 1% in a year but is also 7% below June 2025’s recent high.
Still, this buying burden is up 107% in six years – and don’t forget the $162,000 needed for a 20% down payment to get these payments.
California dreamin’
Statewide homebuying was cooler.
California had 29,379 sales, the fourth-slowest October in 21 years. That’s off 2% in a year and 22% below the month’s average since 2005.
The statewide median selling price of $735,125 was off 0.5% in a year – but remains only 2% below the $750,000 high of May 2024.
And a buyer in October got an estimated $4,597 monthly mortgage payment. That’s flat in a year, 8% below June 2024’s recent high, and up 101% in six years.
National snooze
October was even chillier across the U.S. – the slowest month for sales in 13 years.
Americans bought 340,997 residences in the month, off 6% in a year and 10% below the month’s average. Affordability is relatively poor nationwide.
The U.S. median selling price of $360,000 was up 1.4% in a year – but remains only 3% or $10,000 below the $370,000 high from June.
And a buyer got an estimated monthly payment of $2,251. That’s up 2% in a year, only 7% below June 2024’s recent high, and up 110% in six years.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
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