Homebuying in Los Angeles and Orange counties tumbled 46% over 12 months to the slowest December on record.

Sales totaled 5,772 in the two counties —  down 4,833 from December 2021, according to data from CoreLogic.

Just how slow is the market?

It was the No. 1 slowest-selling December in records dating to 1988.
It was the fourth-smallest sales total for any month.
The year’s sales drop ranked eighth-largest over 35 years. Plus, it was 50% below December’s average sales since 1988.

It’s all because of economic skittishness, especially soaring inflation and pricier home loans, which together crashed 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. In the six-county Southern California region in the past year, sales fell 47% to 12,751. The median sales price rose just a scant 0.7% to $686,000.

Let’s look at where the L.A.-O.C. cooldown was most intense, starting with December’s sales.

Los Angeles County had 3,984 closings, down 3% in a month and 48% lower in a year. Orange County had 1,788 sold,  down 2% in a month and 40% lower in a year.

Next, consider how prices dipped.

In Los Angeles County, the $775,000 median was down 1.1% in a month and 3% lower in a year. It’s also 10% off the $865,000 record high set in April 2022.

Orange County’s $933,500 median was down 2.8% in a month and 1% lower in a year. It’s also 11% off the $1,054,000 peak of May 2022.

Payment pain

Pricier financing is clearly a culprit: The 30-year mortgage averaged 6.4% in December vs. 3.1% 12 months earlier.

My trusty spreadsheet tells me Los Angeles County buyers saw their estimated house payments jump 41% – $3,862 per month on the $775,000 median vs. $2,733 on a year ago’s $799,800 median. And that assumes having $155,000 for a 20% downpayment.

Orange County’s payment was 45% higher, hitting $4,652 on the $933,500 median vs. $3,204 on a year ago’s $938,200 home. Downpayment was $186,700 or 20%.

Single-family homes

Sales: Los Angeles County’s 2,796 transactions were down 3% in a month and 48% lower in a year. Orange County’s 1,022 closings were down 1% in a month and 47% lower in a year.

Prices: Los Angeles County’s $830,000 median was flat for the month and 4% lower in a year. Orange County’s $1 million median was down 3% in a month and 6% lower in a year.

Condos

Sales: Los Angeles County had 894 sold —  down 2% in a month and 51% lower in a year. Orange County had 496 sold —  up 6% in a month and but 39% lower in a year.

Prices: Los Angeles County’s $619,500 median was down 3% in a month and 5% lower in a year. Orange County’s $721,000 median was up 5% in a month and 8% higher in a year.

New homes

Sales: Los Angeles County builder sold 225 units —  down 13% in a month and 36% lower in a year. Orange County had 263 new residences sold —  down 20% in a month but 19% higher in a year.

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Prices: Los Angeles County’s $924,250 new-home median was up 11% in a month and 14% higher in a year. Orange County’s $1 million median was down 5% in a month and 16% lower in a year.

Builder share: In Los Angeles County, new homes were 5.6% of all closings last month compared with 4.6% 12 months earlier. Orange County’s 14.7% share last month compares with 7.4% 12 months earlier.

Note: December’s total sales include 76 closings where the type of home sold could not be determined vs. 91 the previous month and 140 a year earlier.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]