Southern California home prices flat, sales fall in November

Southern California home prices stayed essentially flat in November while sales tumbled during the typically slow fall season.

The median sales price for all homes in the six-county region inched up 0.3% from October to $385,000, research firm DataQuick said Monday. While prices are 19.9% higher than last year, they have been roughly flat for five straight months.

After a swift rebound earlier this year, the Southland housing market has largely been stuck in neutral since the summer. With buyers struggling to afford higher prices, demand has waned at the same time more houses have gone on sale. Buyers have stepped aside, some simply frustrated over the plethora of bidding wars during the spring.

Most economists, however, expect the housing recovery to continue and receive a jolt during next year’s spring home buying season. A recent string of positive economic data has also boosted optimism.

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For now, buyers have taken a break during the slower fall season when many put off their home search around the holidays.

Sales fell 14.2% from October as buyers scooped up 17,283 new and resale condos and houses last month.

But larger market forces have also trimmed demand. Sales fell 10.4% from November 2012.

DataQuick said still-tight inventory, the lack of affordable housing and the partial government shutdown in October likely drove closed sales down compared with last year. Investors have also pulled back compared with last year, the research firm noted.

“November sales were pretty underwhelming,” DataQuick President John Walsh said in a statement.

Sales were 19.8% below average for November, DataQuick said. Sales haven’t risen above average for any month in more than seven years.