Data Quick's August Southland Sales Report

Southern California home sales downshifted slightly in August from July, but were higher than a year ago for the second consecutive month. The median sales price continued to tumble, declining the most where buyers were the most active, a real estate information service reported. What this says to me is that bargain hunters are the only ones buying at this time.

The median price paid for all new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties was $330,000 last month, down 5.2 percent from $348,000 in July and down a record 34 percent from $500,000 in August 2007, according to San Diego-based MDA DataQuick.

Last month's median stood at the lowest point since November 2003 when it was also $330,000. The median peaked at $505,000 in the spring and summer of last year.

"It's the most common and pressing question we hear from Wall Street and Main Street: When will the housing market hit bottom? We see tentative signs that sales - not prices - have hit bottom in some inland markets. That's where home values have fallen the most, stoking a lot more demand," said John Walsh, MDA DataQuick president.

The yearlong plunge in the Southland median sales price reflects three things: Depreciation, a high concentration of sales made after or under the threat of foreclosure (mainly in inland markets), and a dramatic decline in homes financed with larger, so-called jumbo mortgages. Until recently such mortgages were defined as over $417,000 and were common in pricier coastal markets.

A total of 19,366 new and resale houses and condos closed escrow in Southern California last month. That was down 4.7 percent from 20,329 in July but up 9.1 percent from 17,755 in August 2007.

August's sales total was 30 percent lower than the average for that month and marked the third-lowest for any August since 1988, when MDA DataQuick's statistics begin. August sales peaked in 2003 at 39,562.

Foreclosure resales made up 45.5 percent of all Southland resales last month, up from 43.7 in July and 10 percent a year ago. The figure represents the percentage of homes resold in August that had been foreclosed on at some point in the prior 12 months.

Foreclosure resales were highest in Riverside County, at 65.2 percent of resales, and lowest in Orange County, at 33.4 percent.

Indicators of market distress continue to move in different directions. Foreclosure activity is at record levels, financing with adjustable-rate mortgages is near the all-time low, as is financing with multiple mortgages. Down payment sizes and flipping rates are stable, non-owner occupied buying activity appears flat but might be emerging, MDA DataQuick reported.

DataQuick provided the raw data and report details.

It's important to stay in tune with the changes in the market. Call Empire Realty for your next personal real estate consultation at (909) 579-6611, or visit us on the web at Empire Realty.

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