Homebuying in Riverside and San Bernardino counties is running one-third below the mid-summer norm.

Inland Empire home purchases totaled 4,541 in July in the two counties, according to CoreLogic. That’s down 18% for the month and down 22% for the year. How slow is that?

No. 5 slowest-selling July in records dating to 1988.
Only 17% of all months have been slower.
32% below the average July sales pace since 1988.
41% below the red-hot, mid-pandemic. July 2021.
Past 12 months? 79,119 sales, sales, 17% below average.

This year has seen house hunting drastically pull back. Lofty rates cut buying power by 14%. Limited buying options also hindered sales. So, across the six-county Southern California region, sales fell 19% in a year to 13,998.

Affordability was also hurt by pricing. The six-county region’s median sales price increased 2.5% to $743,000 – 1% off the $750,000 record set in April 2022.

The basics

Let’s look inside the Inland Empire market, by county, starting with July sales.

Riverside had 2,641 closings, down 20% in a month and 22% lower in a year. San Bernardino had 1,900 sales —  down 16% in a month and 23% lower in a year.

Next, consider how prices moved.

In Riverside, $551,250 median was down 1.6% in a month and 2% lower in a year. That’s 5% off the $581,500 record set in August 2022.

In San Bernardino, $480,000 median —  up 1.1% in a month and 4% lower in a year. That’s 4% off the $500,000 record set in May 2022.

Payment pain

Pricier financing is a factor as the 30-year mortgage averaged 6.84% in July vs. 5.41% 12 months earlier. Here’s how that hit homebuying costs, by county …

My trusty spreadsheet tells me Riverside buyers got an estimated house payment that’s 14% pricier – $2,887 per month on the $551,250 median vs. $2,532 on a year ago’s $563,100 home. And that’s assumes having $110,250 for a 20% downpayment.

In San Bernardino, buyers got 12% bigger payment – $2,514 monthly on the $480,000 median vs. $2,249 on a year ago’s $500,000 home. The downpayment was $96,000 or 20%.

Single-family homes

Sales: Riverside’s 1,840 transactions were down 19% in a month and 22% lower in a year. San Bernardino’s 1,505 closings were down 14% in a month and 21% lower in a year.

Prices: Riverside’s $565,000 median was down 2% in a month and flat in a year. San Bernardino’s $480,000 median was up 2% in a month and 3% lower in a year.

Condos

Sales: Riverside’s 351 sales were down 14% in a month and 8% lower in a year. San Bernardino’s 114 sales were down 21% in a month and 26% lower in a year.

Prices: Riverside’s $459,000 median was down 3% in a month and 2% higher in a year. San Bernardino’s $500,000 median was up 6% in a month and 5% higher in a year.

New homes

Sales: Riverside builders sold 341 units —  down 31% in a month and 35% lower in a year. San Bernardino’s 155 new residences sold were down 35% in a month and 40% lower in a year.

Prices: Riverside’s $581,500 new-home median was up 1% in a month and 4% lower in a year. San Bernardino’s $575,500 median was up 1% in a month and 10% lower in a year.

Builder share: In In Riverside, new homes were 12.9% of all closings last month compared to 15.5% 12 months earlier. San Bernardino’s 8.2% new-construction share last month compares to 10.4% 12 months earlier.

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

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