Southern California home sales hit the brakes in June, falling to the lowest reading for the month in four years, CNBC reported. Sales of both new and existing houses and condominiums dropped 11.8 percent year over year, as prices shot up to record highs, according to CoreLogic. The report covers Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. Sales fell 1.1 percent compared with May, but the average change from May to June, going back to 1988, is a 6 percent gain. The weakness was especially apparent in sales of newly built homes, which were 47 percent below the June average. Part of the reason is that builders are putting up fewer homes, so there is simply less to sell. In the past, California, one of the largest housing markets in the nation, has been a predictor for the rest of the country. Home prices have been rising everywhere amid a critical housing shortage. Prices usually lag sales by several months, and sales are beginning to crumble, even as more inventory comes on the market. The supply of homes for sale increased annually in June for the first time in three years, according to the National Association of Realtors, but sales fell for a third straight month.
