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Far Fewer SoCal Homes Traded in April, But Prices Rose…

Relatively few homes sold last month across Southern California, but the coronavirus pandemic hasn’t yet brought prices down.

Data from DQNews shows that sales dropped 35.2 percent month-over-month in Los Angeles County — more than any other Southern California county — and closing prices rose 3.8 percent in April to $630,000, according to the L.A. Times. Those sales likely went into escrow in late March around when stay-at-home orders took effect.

Real estate deals have been allowed to continue, but mitigation measures made it difficult to show properties. The City of L.A. only opened in-person showings at the end of April.

There are different reasons why sales volume fell besides the difficulty of showing properties. Some buyers and sellers may have pulled out of deals. Sellers may have pulled their listings and some buyers may have taken a break from their home searches. Buyers may also have trouble securing mortgages as lenders tighten their standards.

Would-be sellers could have held off on listings. Fewer homes are hitting the market so there hasn’t been a flood of supply to bring down pricing.

Some parts of SoCal still saw a flurry of deals. San Bernardino County saw a 41.5 percent year-over-year increase in new home sales and San Diego County saw a 8.3 percent increase in new home sales.

Riverside County’s 5.8 percent increase in the median home price to $412,500 was more than any other county last month. Orange County’s 2.7 percent increase to $755,000 was the weakest percentage increase, but that dollar figure remained the highest in the region. [LAT] — Dennis Lynch

Article provided by: The Real Deal

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