Record pricing, rising rates cut sales
Inland Empire home sales fell 11% in a year to 6,564 in May as record selling prices and skyrocketing mortgage rates scared off house hunters.
The slump came as Inland Empire listings rose 52% in the 12 months ended in May — the No. 4 jump among the biggest 50 metro areas in the U.S., according to Realtor. com.
Across Southern California, 20,470 singlefamily, condominium, existing and newly constructed homes sold in six counties, down 5% for the month, and down 16% over the past year, according to DQNews. The region’s median home price of $760,000 was flat for the month but up 13% over 12 months.
Pricier home loans meant SoCal’s typical buyer got a monthly house payment of $3,188 for that $760,000 median vs. $2,269 a year ago on the $670,000 median. That’s a 40% jump in the theoretical monthly check to the lender.
Rates on a 30-year, fixed-rate mortgage averaged 4.79% in the three months ending in May vs. 3.03% a year earlier. That translates to 19% less buying power for house hunters. (Larger drops occurred only 2% of the time since 1971.)
Here’s what my trusty spreadsheet found in the DQNews report on the Inland Empire’s closed transactions in May …
San Bernardino County
In May, 2,715 residences were sold, the No. 18 busiest May of the 35 since 1988.
The sales volume represented a 6% decrease from April. Since 1988, sales have fallen in this 30-day period 35% of the time with an average 5.0% increase from April. And it was a 12-month dip of 9.2% decrease.
The median of $520,000 for all residences was up 0.10% in the month and up 20.4% over 12 months. This breaks San Bernardino County’s record median of $519,500 set in April.
In the pandemic era, 14 price records have been broken since February DQNews
2020. The median’s $170,000 increase equals a gain of $8.60 every hour over these 27 months.
Builders sold 358 new homes, down 1% in a year. Median of $600,750 — a 24% increase over 12 months. New homes were 13.2% of all sales vs. 12.1% a year earlier.
Rising rates meant a buyer paid $2,181 a month for ‘s $520,000 median priced-residence vs. 12 months earlier $1,463 monthly on a $432,000 median. So prices rose 20% vs. a house payment’s 49% increase.
What sellers are thinking: Inland Empire listings are up 52% in the 12 months ended in May — No. 4 jump of 50 big metro areas, according to Realtor.com.
Riverside County
In May, 3,849 existing and new residences sold, down 5% from April. This was the No. 17 busiest May of the 35 since 1988. It was also a 12.3% decrease over 12 months.
The median price of $598,500 for all home types was up 1.4% in the month and 19.2% over 12 months. This breaks Riverside County’s record median of $590,000 set in April.
In the pandemic era, 18 price records have been broken since February 2020. The median’s $199,500 increase equals a gain of $10.09 every hour over these 27 months.
Builders sold 623 new homes, down 4% in a year. Median of $594,500 — a 19% increase over 12 months. New homes were 16.2% of sales vs. 14.8% a year earlier.
Higher rates meant a buyer paid $2,510 a month for ‘s $598,500 median priced-residence vs. 12 months earlier $1,700 monthly on a $502,000 median. So prices rose 19% vs. a house payment’s 48% increase.
Postscript
Ponder how much house you get for $1 million, according to Zillow.
Los Angeles County buyers get 1,684 square feet — 33% smaller than the U.S. average of 2,528 and Orange County is 1,687 square feet (33% smaller).
But in San Bernardino County the same price gets a buyer 2,582 square feet (2% larger), and Riverside County is 3,032 square feet (20% larger).