Cheaper mortgages and slight price discounts put Southern California house hunters in a rare yet modest buying mood as the traditional spring sales rush began.
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Using Attom data tracking closed sales in March, my trusty spreadsheet found Southern California had 14,538 sales, a 2% boost from a year earlier, and the first year-over-year increase since October 2025.
The month also marked Southern California’s highest March sales count since 2023. Attom’s tally for the six-county region includes houses and condos, both existing properties and newly constructed residences and goes back to 2005.
Remember, closed sales in March were largely the result of decisions made before the Iranian war upended the economy.
Looking back, a key draw for buyers was the average mortgage rate of 6.1%. The last time rates were lower was in October 2022.
Also, house hunters may have been energized by home prices that have seemingly peaked. The six counties’ combined March median of $810,000 was down 1% from a year earlier and 3% below the record high of $830,500 reached in June 2025.
Brief bump?
Any exuberance should be tempered. Whatever upswing came in March could be short-lived.
Consumers are antsy.
Locally, Southern California job creation is running two-thirds below its post-Great Recession norm.
Globally, what was promised as a short war with Iran has proven difficult to end. Oil prices have surged, driving up gasoline prices, inflation fears and overall economic concerns.
And the business climate turmoil includes mortgage rates back to 6.4% in mid-May.
Plus, March’s regional sales pop is quite modest, historically speaking.
The slim increase left the month as Southern California’s fourth-slowest-selling March since 2005, a pace that’s 29% below the 22-year average.
Yes, March sales were 24% above February’s pace. But Southern California sales average a 32% jump in March, the kickoff to homebuying’s annual prime time.
Or think longer-term. Southern California’s 168,153 sales completed during the 12 months ended in March were down 1% year-over-year and 27% below average.
Parsing payments
Do not forget that Southern California homebuying is all about the monthly payment.
And March’s burden looked modestly less challenging – a plus to those who bought.
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A typical Southern California buyer got a $3,931 payment in March, assuming they bought the median-priced residence at the three-month average mortgage rate with a 20% down payment. Remember, that doesn’t include taxes, insurance, association fees and maintenance expenses. And you’ll need to find cash for the $162,000 down payment.
The good news is that this estimated payment was 8% lower than in March 2025 and 9% below the peak of $4,336 reached in May 2024.
However, Southern California’s March payment remained 41% higher than it was four years earlier, when the Federal Reserve ended its cheap-money policy and decided to fight inflation with costlier financing. The switch ballooned mortgage rates.
Contemplate this painful memory: Home loans averaged 4.2% in March 2022 – a jump from December 2020’s historic low of 2.7%. In that coronavirus era, the Fed was attempting to boost an economy throttled by pandemic-linked business restrictions.
Counting counties
Homebuying rose in four of the six local counties compared with March 2025. Here are sales patterns for the six, ranked by sales change in the past 12 months:
– San Diego: 2,360 sales – No. 4 lowest since 2005 – up 7% in a year. The $900,000 median was flat over the year, 2% below the June 2024 peak of $914,000.
– Los Angeles: 5,150 sales – No. 4 lowest since 2005 – up 4% in a year, $894,700 median was off 1% in a year to 3% below peak of $918,000 in June 2025.
– Riverside: 2,651 sales – No. 3 lowest since 2005 – up 2% in a year, $605,000 median was off 0.2% in a year to 1% below peak of $613,000 in April 2025.
– Orange: 2,154 sales – No. 4 lowest since 2005 – up 1% in a year. A record $1.22 million median was 2% increase in a year and topped the previous peak of $1.21 million in June 2025.
– Ventura: 580 sales – No. 3 lowest since 2005 – off 1% in a year, $875,000 median was up 1% in a year to 2% below the peak of $890,000 in June 2025.
– San Bernardino: 1,643 sales – lowest in data dating to 2005 – off 3% in a year, $520,000 median was off 3% in a year to 5% below the peak of $549,000 in October 2024.
Elsewhere
House hunters aren’t rushing to buy homes outside of Southern California.
Statewide, the 27,234 sales in March were the fourth-lowest count since 2005 and were essentially flat with March 2025. The $736,000 median was down 1% year-over-year and 2% below the June 2025 peak of $751,000.
Nationwide, March’s 302,032 sales were the seventh-lowest since 2005. They’re also 10% below a year earlier. The $372,274 median was up 4% over the past year and is only 1% below the June 2025 peak of $370,200.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
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