CA: LA RE Prices Declining

LA Times/MSN Headline: Southern California home prices and sales dropped in June, signaling a slowdown…

“Southern California home prices and sales edged lower in June from the month before, adding to the pile of evidence that the housing slowdown is starting to pull home values lower. ‘It’s not a huge surprise. We’ve been expecting things to turn negative for a while now,’ said Scott Wild, senior vice president of consulting at John Burns Real Estate Consulting. ‘There’s more supply and less competition, so buyers have a few more options than they used to.'”

It’s not only prices lowering, but fewer homes are now selling year over year:

The region’s six-county median sale price was $750,000, down from $760,000 in May. However, a broader view shows that prices are still soaring compared with last June, when the median price was $679,000.

Still, the drop comes as a slight surprise. Although median prices tend to peak in the summer, the average increase from May to June was 1.78% over the last decade, DQNews data show. The last time prices fell from May to June was in 2010.

Home sales, meanwhile, slipped on a month-over-month basis but plunged compared with a year earlier, DQNews said. A total of 20,289 homes were sold in June compared with 27,143 the previous June — a decline of 25.3%

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