It seems hard to believe but home sales dropped in January over the previous month as well as dipped below January 2014 for the 14th month of the past 16 to show a decline over the previous year. Many Real Estate analysts agree that a "Winter Slump" is common in most years but most homeowners had hoped that the historically low interest rates available would keep the market strong.
As a summary of the details, approximately 13,560 properties sold in L.A., Riverside, San Diego, Ventura, San Bernardino and Orange counties in January, down 29.4% from the 19,205 properties sold in December, according to CoreLogic DataQuick data. Most analysts agree, however, that there should be no worry since this is very close to the average fall of 27.6 percent in the same monthly period that has occurred since 1988. “The January and February statistics are always interesting, and sometimes a bit strange, but they’re not necessarily a good indication of what’s to come,” said Andrew LePage, data analyst for CoreLogic DataQuick. “That’s largely because many traditional buyers and sellers drop out of the housing market during the holidays and mid-winter, and therefore don’t close deals during those months... At the same time, recent gains in job and income growth, coupled with low mortgage rates, could stoke demand and put significant pressure on prices unless we see a meaningful jump in inventory.”