Downey Sold Far Fewer Homes but Prices Still Rose — Let Me Explain (July 2026)

Downey looks like a contradiction this month — far fewer homes sold, but prices still went up. Those two things feel like they shouldn’t happen together, so let me walk you through it step by step, because once you see what’s really going on, it makes complete sense.

I’m Hassan Ghacham with Power Real Estate Group. Here’s the July 2026 breakdown for Downey, in order.

Start with the thing driving everything

There’s a lot less for sale. The number of homes on the market dropped about 21%, to around 82, and new listings fell about 23%. When inventory gets that tight, you naturally get fewer sales — closed sales fell about 42%, to 18 — not because buyers disappeared, but because there’s simply less to buy. That’s the whole reason the sales count looks low. It’s a supply story, and if you stop reading at the sales number, you’ll draw exactly the wrong conclusion.

The prices tell you demand is alive

Here’s the proof it’s supply and not weak demand. A typical Downey home is worth more than it was last year — the median came in around $842,500, up about 2%. And here’s the number I really want you to see: for the same size home, buyers are paying about 14% more per square foot than they were a year ago. Price per square foot adjusts for how big the home is, so it’s a clean, apples-to-apples read — and it doesn’t jump 14% in a soft market. Buyers are competing hard for a small pool of homes.

How homes are closing

When homes sell, sellers are getting 100% of their final asking price, and they’re going under contract in about 14 days — down almost 40% from a year ago. Full price in two weeks is not what a cooling market looks like. It’s what a tight, competitive one looks like when there just isn’t enough to go around.

If you’re buying

You’ve got fewer options and you’re paying more, so you have to be sharp. There’s little room to negotiate down, and homes move in about two weeks. Get pre-approved and be ready to act the moment the right one comes up — in this market, hesitation is what costs buyers the home, not price. The buyers who win here are simply the ones who are ready when it appears.

If you’re selling

Don’t let that low sales number scare you — it’s about supply, not demand, and thin inventory is actually working in your favor. Less competition from other listings, full-price offers, and quick closings. Months of supply (how long it’d take to sell everything at the current pace) sits around 3.1, keeping Downey seller-leaning. If you’ve been thinking about listing, the conditions are genuinely on your side right now, and waiting mostly just risks more inventory showing up to compete with you.

Bottom line

Supply down about 21%, fewer sales, but prices climbing and homes closing fast at full price. That’s a seller-leaning market, plain and simple — the low sales count is the least important number in the whole report. Whichever side you’re on, let’s get a real read on your specific situation against these numbers before you make a move. Send me a message and I’ll walk you through it.