Friday, January 27, 2023
51.8 F
Oxnard
More

    Latest Posts

    Two Visions of America by Don Jans

    Inland Empire homebuying tumbles 45% as payments jumped by 50%-plus

    By JONATHAN LANSNER, Orange County Register

    Homebuying’s slump in Riverside and San Bernardino counties pushed sales down 45% in November from a year earlier as house payments jumped 54% or more.

    Inland Empire home sales totaled 4,350 — down 3,623 from November 2021, according to data from CoreLogic. It was the No. 7 slowest November in records dating to 1988 of closed transactions for single-family homes and condos, existing and new construction. It was also the biggest 12-month decline and was 28% below the average November sales since 1988.

    Economic skittishness, especially soaring inflation, and pricier home loans have frozen the housing market. Surging mortgage rates also cut buying power by 35% in a year, making the region’s high home prices even more unaffordable.

    Let’s look at where the local cooldown was most intense, starting with November’s sales.

    Riverside County had 2,445 sales, down 9% in a month and 46% lower in a year. San Bernardino County had 1,905 residences sold —  down 9% in a month and 45% lower in a year.

    Next, consider how prices moved. In Riverside County, the $543,750 median was down 0.2% in a month and 2% higher in a year. That’s 9% off the $598,500 record high of May 2022.

    San Bernardino County had a $466,000 median —  down 4.9% in a month and 1% higher in a year. That’s 11% off the $523,000 peak set in May 2022.

    Payment pain

    Pricier financing is clearly a culprit.

    The 30-year mortgage averaged 6.8% vs. 3.1% 12 months earlier. Here’s what my trusty spreadsheet tells us about how the rate jump changed a typical homebuyer’s house payment …

    Riverside County: Buyers got a $2,836 estimated payment per month on the $543,750 median vs. $1,817 on a year ago’s $532,000 median 56% higher. And that’s assumes having $108,750 for a 20% downpayment.

    San Bernardino County: Buyers got a $2,430 payment on the $466,000 median vs. $1,577 on a year ago’s $461,800 – 54% higher. A 20% downpayment was $93,200.

    Single-family homes

    Sales: Riverside County’s 1,509 transactions were down 16% in a month and 54% lower in a year. San Bernardino County’s 1,350 closings were down 14% in a month and 50% lower in a year.

    Prices: Riverside County’s $532,000 median was down 3% in a month and 2% lower in a year. San Bernardino County’s $433,000 median was down 8% in a month and 4% lower in a year.

    Condos

    Sales: Riverside County had 208 units sold —  down 32% in a month and 58% lower in a year. San Bernardino County had 101 sold —  down 31% in a month and 45% lower in a year.

    Prices: Riverside County’s $449,500 median was up 2% in a month and 5% higher in a year. San Bernardino County’s $432,000 median was down 10% in a month and 2% lower in a year.

    New homes

    Sales: Riverside County builders sold 647 units residences —  up 33% in a month and 7% lower in a year. San Bernardino County had 350 units sold —  up 28% in a month and 17% lower in a year.

    Prices: Riverside County’s $586,750 median was down 2% in a month and 2% higher in a year. San Bernardino County’s $575,000 median was down 12% in a month and 1% higher in a year.

    Builder share: Riverside County’s 27% last month compares to 15% 12 months earlier. San Bernardino County’s 18% last month vs. compares to 12% 12 months earlier.


    TELL YOUR FRIENDS ABOUT CITIZENS JOURNAL  Please keep us publishing – DONATE

     

    - Advertisement -
    0 0 votes
    Article Rating
    Subscribe
    Notify of
    guest

    0 Comments
    Inline Feedbacks
    View all comments

    Latest Posts

    advertisement

    Don't Miss

    Subscribe

    To receive the news in your inbox

    0
    Would love your thoughts, please comment.x
    ()
    x