Southern California housing market’s big shift: sales declines, swooning prices

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Last year was Southern California’s slowest in 14 years, with home sales at their fourth-lowest level in records dating back to 1988.

SoCal homebuying Dec. 2022

Last month’s median was up a mere 0.7% from the year before, following a 20-month bout of 10%-20% annual gains that lasted through last June. “A year ago, you had to jump on a house the moment it came on the market,” said Phil Schaefer, an agent with Seven Gables Real Estate in Tustin. “Now can think about it for two or three weeks.”Slowing sales and falling prices may be good news for homebuyers hunting for bargains. But it’s bad news for real estate providers like brokers, lenders and termite inspectors.

It took five months and a $40,000 price cut to find a buyer. He had to shell out an additional $30,000 for repairs and buyer’s closing costs. Taking into account his expenses, he made less than $10,000 on the deal, if that. “They were in a buying frenzy, so they were doing things that weren’t logical,” said Marilyn Wilson, WAV founding partner.

 

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