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.
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