November Home Sales Drop 12 Percent in Southern California

Southern California saw its fourth consecutive monthly decline in home sales in November, with a sharp drop of 12 percent.

The Los Angeles Times reported that despite the drop, the regional median home price is still rising, albeit slightly, at a year over year rate of 3.5 percent in November. This has kept experts from declaring market bust in the region.

“The housing market is slowing, but … a slowdown does not mean the sky is falling,” said Aaron Terrazas, an economist with Zillow.

If volatility on Wall Street and in Washington significantly affects consumer confidence and business investment decisions, that assessment could change. But for now, Terrazas and other economists note the factors that led to the last two Southern California housing crashes aren’t readily evident today.

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