Home prices in the Southland fall again in November

Home prices in Southern California fell in November, marking the fifth time in six months they have declined amid a broad slowdown in the market.

The six-county region’s typical home price dropped 0.9% from October to $815,911 last month, according to data released Monday by Zillow.

The typical home price — which Zillow defines as roughly the average of the middle third of the market — is now 6.3% below the peak reached in May.

Home values are broadly falling for the first time in a decade because borrowing costs have exploded this year and priced many people out of the market.

Mortgage interest rates have more than doubled to the mid-6% range, a result of high inflation and the Federal Reserve’s attempts to fight it.

Among individual Southern California counties, home price declines from the peak range from 3.5% in San Bernardino to 8.6% in Orange.

In Los Angeles County, prices are down 7%.

The declines aren’t enough to offset the rise in borrowing costs, even though mortgage rates have come down from recent highs of just over 7%.

For example, if someone bought a typically priced L.A. County home in November and received the prevailing mortgage rate of 6.5%, the monthly payment would be $360 more than if the person had bought the typically priced home at May’s peak, since rates were lower then, according to a Zillow analysis that assumed 20% down payments in both cases.

Given strong demand in early 2022 — before rates jumped — Southern California home prices are still higher than they were at this time last year. That, along with higher mortgage rates, means housing is much more expensive than it was in the winter of 2021.

Many analysts expect home prices to keep falling in 2023.

If values decline enough, it could eventually offset the rise in borrowing costs, though the trajectory of prices depends on several factors, including the direction of mortgage rates and whether the Fed’s actions to fight inflation push the country into recession.

Here is how home prices changed in the last month in the six counties of Southern California.

In Los Angeles County, the typical home price fell 0.5% from October to $842,752 in November. Prices are now 6.3% lower than the county’s peak, reached in May.

In Orange County, the typical home price fell 3.4% from October to $1,014,194 in November. Prices are now 8.6% lower than the county’s peak, reached in May.

In Riverside County, the typical home price fell 0.5% from October to $599,428 in November. Prices are now 4.6% lower than the county’s peak, reached in June.

In San Bernardino County, the typical home price fell 0.6% from October to $523,830 in November. Prices are now 3.5% lower than the county’s peak, reached in June.

In San Diego County, the typical home price rose 0.1% from October to $877,278 in November. Prices are now 7% lower than the county’s peak, reached in April.

In Ventura County, the typical home price rose 1.2% from October to $837,891 in November. Prices are now 3.9% lower than the county’s peak, reached in May.