Southern California’s homebuying collapse continues with the second-slowest selling June on record as house hunters shied from record-high pricing.
That’s what my trusty spreadsheet found by reviewing sales data from Attom for Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties. These stats cover a broad range of closed transactions — houses and condos, both existing residences and new construction — and go back to 2005.
How slow? Southern Californians bought 14,445 homes in June. Yes, it’s up 3% from a year ago. Yet it’s 35% below the 21-year average.
Think about the depth of the slump. The only June with fewer sales going back 21 years was last year. So, since 2005, Southern California’s worst Junes were the past two years – that’s fewer sales than even in the depths of the Great Recession.
And Southern California sales totaled 83,357 during the last six months. That’s the third-worst sales tally for a year’s first half going back to 2005, behind, you guessed it, 2024 and 2023. Fourth worst? 2008.
The price is wrong
Simply put, the cost of buying is too high.
Eyeball price tags. The six-county region’s $835,000 median selling price for June was up 3% over 12 months. That tops the previous high of $825,089 set in May.
These stubbornly lofty prices compound the pain of higher mortgage rates that only dulled the upswing: a 10% gain the past three years vs. a 41% surge the previous three years.
House hunters also struggled with boosted mortgage rates, tied to sticky inflation and a Federal Reserve focused on taming the cost of living. Starting three years ago, the central bank elevated the interest rates it controls and stopped direct support of housing wth the end of purchases of mortgage bonds.
As a result, the 30-year mortgage rate averaged 6.8% in the three months ended in June, according to Freddie Mac. That’s up from 5.2% three years earlier and the historic low of 2.7% at year-end 2020.
Combined, we see slashed affordability.
The California Association of Realtors estimated that in Southern California, a $218,400 household income is required to comfortably buy a single-family house in the second quarter, up 21% in three years.
And only 14% of local households earn that much.
Better options?
This year has offered Southern California house hunters wider choices.
Yet having more homes on the market has done little to alter the enduring pattern of languishing homebuying and expensive prices.
The six-county region had an average of 34,300 homes for sale in 2025’s first half. It’s a 50% increase in a year, and the supply is 110% higher than three years ago.
Still, the listings inventory remains 21% below pre-pandemic 2019 levels. That shortfall may have limited price battles among sellers.
Bottom-end blues
The financial burden is greater for house hunters with tighter budgets as numerous questions swirl about the overall business climate.
Added to long-running pricing and financing hurdles, the new administration’s unorthodox economic policies have created unease for both consumers and corporate leaders.
Locals seeking lower-priced housing seem to be the most reluctant to buy. Consider two slices of the market — single-family homes vs. traditionally cheaper condos.
Across Southern California, 10,941 single-family homes were sold in June. That was up 4.5% in a year but still the second-lowest June on record. The $887,500 median was an all-time high and was 3.2% higher over 12 months.
Condo sales were somewhat weaker.
The 3,504 sales were up a mere 0.1% in a year and were the second-slowest June. The $688,875 median — the fourth-highest — was just 0.6% higher over 12 months.
Geographically speaking, the region’s “bargain” spots had the weakest sales. Look where there were no gains — the Inland Empire counties.
Riverside: 2,367 sales — its slowest June over the past 21 years — off 1.9% in a year. The $600,000 median — No. 7 highest — was flat over 12 months.
San Bernardino County: 1,677 sales — also No. 1 slowest — flat in a year. The $525,000 median — No. 9 highest — was 0.2% lower over 12 months.
Then ponder the costlier rest of the region, ranked by their sales gains:
Ventura County: 621 sales — No. 3 slowest June during the last 21 years — up 7.1% in a year. The $890,000 median — all-time high — was 1.7% higher over 12 months.
San Diego County: 2,307 sales — No. 2 slowest — up 6.4% in a year. The $900,000 median — No. 3 highest — was 1.6% lower over 12 months.
Los Angeles County: 5,348 sales — No. 3 slowest — up 6.3% in a year. The $915,000 median — all-time high — was 2.5% higher over 12 months.
Orange County: 2,125 sales — No. 2 slowest — up 1.2% in a year. The $1.21 million median — all-time high — was 0.9% higher over 12 months.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com