Business & Economy

Southern California home sales drop in October

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In real estate, home sales across Southern California dropped last month to the second lowest point in 18 years. Some analysts worry we might be in for a double dip recession.

This time last year, just over 19,000 homes were sold in the Southland. But the real estate tracking firm DataQuick reported that just 16,000 homes sold last month – one of the worst months since the firm started keeping track in 1998.

November is typically a bad month for home sales, but even accounting for that, the Southland hasn’t seen a worse November since the subprime mortgage crisis hit in 2007. Even fewer new homes sold. Blame that on high construction costs.

The good news? Not much, but prices have steadily increased. The median sale price last month went up about 1-and-a-half percent, but analysts noted that even that’s the tiniest bump since prices started rising last year.