Posted on 07/19/2022 12:02:16 PM PDT by Oldeconomybuyer
A cooling trend sparked by rising mortgage rates continued to chill Southern California’s housing market, with home prices and sales dropping at a time when they typically are on the rise.
Home prices dipped from May to June for the first time since 2010. Sales fell from May levels for the first time since 2013.
Despite the cool down, experts say a market crash still appears unlikely.
“We’re still in what we call in the industry ‘a slight seller’s market,’ ” said Geoffrey Tackney, broker and co-owner of GMT Real Estate in Garden Grove. “We’re entering a neutral market, but we’re not in a buyer’s market yet.”
The median price of a Southern California home – or the price at the midpoint of all sales – was $750,000 in June, down $10,000 or 1.3% from May, according to CoreLogic figures provided by DQNews on Tuesday, July 19.
(Excerpt) Read more at ocregister.com ...
It’s not a bad thing and it isn’t just rate related
Lotta people still just escaping from Gulag California
because mortgage rates are so damn high people cant afford to buy a home
$750K median price. Median household income is about $100K maybe.
That income doesn’t come close to supporting a $600K mortgage (because everybody puts down 20% right?).
vacant foreclosures for the homeless
Many are just abandoning their homes and moving east.
>>>because mortgage rates are so damn high people cant afford to buy a home>>>
I know everything is relative, but most people don’t remember the early 80s. I was a mortgage underwriter and the interest rate on a home loan was literally, twice what it is today, and even higher. Fixed rate 30 year rates were 12 and 13 per cent. And I was so busy, I had to take files home at night.
Weird times...
***but most people don’t remember the early 80s.***
I remember it very well. Bought a house in 1977 at 8.5% interest. by 1980, the rates had gone up to 12 % and lenders were begging everyone to renew their loans at “The low rate of 12-14% and they would give you 125% the value of your property to do so!”
Lots of people did, and then came the crash.
Same thing happened again in the first years of 2000.
>>>I remember it very well. Bought a house in 1977 at 8.5% interest. by 1980, .........”
Yes, the fruits of Jimmy Carter. Although Biden is making Carter look Reaganesque....thanks.
Historical Home Prices in California
http://www.laalmanac.com/economy/ec37.php
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