The Southern California real estate market has been experiencing notable changes, and it's important to stay informed to make better-informed decisions. In this article, we will provide you with an analysis of select counties in Southern California, offering insights into recent trends and developments.
Regional Economic Overview
The job growth in the Southern California market areas has been slowing down recently. However, despite this slowdown, the region has still managed to add over 164,700 jobs since the third quarter of 2022, representing a growth rate of 1.7%. Notably, Los Angeles has experienced a boost in job growth following the end of the writers' strike, adding over 89,000 jobs in the past 12 months. Orange County has seen a growth of 34,100 jobs, San Diego County is up by 31,400 jobs, and Riverside has seen an increase of 9,700 jobs.
While the job market has shown some positive growth, the region's unemployment rate has seen a slight increase. In August, the unemployment rate stood at 5.2%, up from 4.2% in the third quarter of 2022. San Diego County had the lowest jobless rate at 4.3%, while Los Angeles County had the highest rate at 5.8%.
Southern California Home Sales
In the third quarter of 2023, the number of homes sold in Southern California was 16% lower compared to the same period in 2022. Additionally, home sales were down 8.6% compared to the second quarter of this year. The decline in sales was the most significant in San Bernardino County, although all markets experienced a decline. It is concerning that despite an increase of over 14% in the number of homes for sale, sales have declined. Rising mortgage rates seem to be impacting the market, and sellers are starting to adjust their list prices accordingly.
Annual change in home sales by county in Southern California from Q3 2022 to Q3 2023. Orange County had the least drastic change at -12.1%, while San Bernardino had the largest change at -18.9%. San Diego and Riverside County are in the middle at -17.1 percent.
Southern California Days on Market
The average time it took to sell a home in the Southern California region in the third quarter of 2023 was 27 days, which was an increase of two days compared to the same period in 2022. Market time fell by six days compared to the second quarter of 2023 and was lower across all counties covered in this report.
Homes in San Diego County continue to sell at a faster rate than in other markets within the region. However, the days on market decreased by two days compared to the third quarter of 2022. Orange County saw a decrease of one day in market time, but everywhere else experienced an increase.
Days on market by county for homes in Southern California in Q3 2023. San Diego County had the lowest DOM at 19, while Riverside County had the highest at 35. Los Angeles is in the middle at 26 days.
As homebuyers are presented with increasing inventories, those who choose to make offers are doing so relatively quickly, despite the declining number of sales. However, rising inventories may cause market time to rise as buyers become more selective.
In summary, the Southern California real estate market is experiencing some challenges, with declining home sales and increased market time. However, opportunities still exist, and understanding these trends can help you make informed decisions in the ever-evolving real estate landscape.
Remember to consult with your Windermere Real Estate agent for detailed information about the housing market in your specific area.
