A prospective homebuyer takes in the view at a beach front property in Newport Beach, California.
Jamie Rector | Bloomberg | Getty Images
High prices are hitting the Southern California housing market hard, reversing the sales gains over the past few months.
Sales fell 6.9% in June compared with May and were down 8% annually, according to CoreLogic. That is the slowest June pace since 2014. Historically, sales usually gain an average 5.8% from May to June.
Sales have been falling on a year-over-year basis for 11 straight months, but the drops had been shrinking in April and May. Mortgage rates also fell more than 50 basis points over the past three months, making the decline in sales even more surprising.
“Thanks to lower mortgage rates, many home shoppers face slightly lower monthly mortgage payments than they would have a year ago. Despite that and a healthy economic backdrop, the market was sluggish, suggesting many would-be buyers remained priced out or concerned about buying near…