📉 Record Prices Push SoCal Home Sales 35% Below Average

By: HOTT Homes Property Management & Real Estate
August 2025 Market Update

Southern California’s housing market just logged another month of strikingly low sales despite record-high prices. According to data from Attom and reported by the Orange County Register, June 2025 marked the second-slowest June for home sales since 2005 — with only June 2024 being worse.

Sales at Historic Lows

• 14,445 homes were sold in June 2025, across Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties.

• That’s a 3% gain from last year, but still 35% below the 21-year average.

• In fact, the past two years have set the record for the slowest Junes on record, even weaker than the depths of the 2008 Great Recession.

• For the first half of 2025, sales totaled 83,357 — the third-worst start to a year in over two decades.

Prices Hit New Records

Even as sales slowed, prices reached new highs:

• The regional median price hit $835,000 in June — a 3% increase year-over-year, and a new all-time high.

• Single-family homes: Median price of $887,500, up 3.2% annually.

• Condos: Median price of $688,875, up just 0.6%.

The Affordability Crunch

The affordability squeeze remains the biggest hurdle:

• Mortgage rates averaged 6.8% in the three months ending in June (up from 5.2% three years ago, and 2.7% at the end of 2020).

• The California Association of Realtors (CAR) estimates buyers now need an annual income of $218,400 to comfortably afford a median-priced SoCal home.

• Only 14% of local households reach that income threshold.

Inventory Is Up — But It’s Not Enough

Buyers technically have more options this year:

• 34,300 homes for sale on average in the first half of 2025, up 50% from last year and 110% from three years ago.

• Still, inventory remains 21% below pre-pandemic 2019 levels, which has kept upward pressure on prices.

County-by-County Snapshot

• Los Angeles County: 5,348 sales (+6.3% YoY); median $915,000 (record high, +2.5%).

• Orange County: 2,125 sales (+1.2%); median $1.21M (record high, +0.9%).

• San Diego County: 2,307 sales (+6.4%); median $900,000 (down 1.6%).

• Ventura County: 621 sales (+7.1%); median $890,000 (record high, +1.7%).

• Riverside County: 2,367 sales (-1.9% YoY, slowest June in 21 years); median $600,000 (flat).

• San Bernardino County: 1,677 sales (slowest June on record, flat YoY); median $525,000 (down 0.2%).

What This Means for Buyers & Sellers

For buyers: Affordability is the challenge — high prices and mortgage rates are stretching household budgets thin. But with more inventory than in previous years, house hunters may find less competition than during the pandemic frenzy.

For sellers: Pricing strategy is critical. While prices remain near record highs, buyers are hesitant, especially at the lower end of the market. Overpricing could leave homes sitting on the market longer.

At HOTT Homes, we’re helping clients navigate this shifting market — whether you’re selling at today’s peak values or strategizing to buy when conditions align.

📞 Contact us today to discuss your real estate goals.

HOTT Homes Property Management & Real Estate
DRE #01448692 | Alan Beacham DRE #02068284 | Monique H. Ott-Beacham DRE #02189076