The Southern California housing market flashed mixed signals in August as LA home sales drop while prices continued to inch higher, leaving buyers and sellers watching interest rates for direction.
According to the California Association of Realtors (CAR), California recorded 264,240 existing single-family home sales in August, up 0.9% from July but down 0.2% from last year. The statewide median price reached $899,140, 1.7% higher than July and 1.2% above August 2024, indicating demand strong enough to support prices despite slower activity.
In Los Angeles County, sales fell 16% from July and 12.3% from a year ago. The median price rose to $930,720, a 2.1% month-over-month gain and 1.2% year-over-year increase. Across Southern California overall, transactions declined about 3.7% year-over-year, while prices rose 1.2%.
In Orange County, sales slipped 4.3% from July but were 1.4% higher than one year ago. The median price was $1,385,000, down 1.1% from both July and August 2024.
Statewide inventory in August was up 23.5% from a year earlier, and the average time to sell lengthened to 31 days from 22 days in August 2024. The shift gave buyers more choices and negotiating room, while prompting some sellers to adjust pricing or strategy.
The report notes that rate movements will be the main driver for Southern California in the coming months. If borrowing costs decline, demand could firm and sales may gradually recover. Performance is also likely to diverge by area, with neighborhoods near transit or job centers better able to defend prices, while outer-ring locations could see softer activity.
For now, conditions favor buyer leverage even as prices hold up, and LA home sales drop remains the headline trend heading into fall.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
