Southern California moving activity faces record slowdowns

Fewer people are moving to Southern California, fueling near-record low home sales.

There were 18,541 homes sold in Southern California - comprising Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties - in August, reported the San Diego-based real estate tracking firm MDA DataQuick. That was a 2.1 percent decrease from July, and a 13.8 percent drop from a year earlier.

While the home sales drop wasn't as big as the one experienced in July - when year-over-year figures plummeted 21.4 percent - the sales volume for August was the lowest for that month in three years, and the second lowest experienced in 18 years.

MDA DataQuick's president, John Walsh, attributed slow moving activity to the expiration of the homebuyer tax credit. "But other factors are suppressing sales, too, such as the lack of meaningful job growth and potential buyers' concerns about job security," he added. "Also, for many out home shopping now, there's little beyond ultra-low mortgage rates to pressure them to buy sooner rather than later, especially in areas where the number of homes for sale is climbing."

That large number of homes for sale can dilute demand for relocating families. That sentiment could take hold nationwide, as the national home inventory reached a 12.5 month supply in July, according to the National Association of Realtors.
 

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