Home sales in Southern California increased again last month, led by strong foreclosure resale activity in the Inland Empire. The median price paid for a home was unchanged from January and February, indicating a floor in pricing maybe forming.
A total of 19,486 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month, was up 27.9 percent from last month, and up 52.1 percent from March 2008, according to MDA DataQuick of San Diego.
Last month was the ninth in a row with a year-over-year sales increase. March last year was the slowest March in DataQuick's statistics, which go back to 1988. The March average is 25,138.
"Sales of lower-cost housing, especially foreclosure resales in Riverside and San Bernardino counties, are driving today's market" said John Walsh, MDA DataQuick president.
"High end neighborhoods are dormant right now, but when jumbo financing becomes available again, possibly before summer, we expect enough sales to close escrow to generate more meaningful price statistics. Of late the statistics haven't represented the overall market. Rather, to a large extent they're simply a reflection of what is selling – mainly distressed properties and homes in the more affordable neighborhoods," Walsh said.
Jumbo loans of more than $417,000 accounted for just under 40 percent of all home purchases two years ago. Last month they accounted for just 10.0 percent. At the same time, a common form of financing used by first-time home buyers in more affordable neighborhoods is near record levels. Government- insured, FHA mortgages made up 37.8 percent of all purchase loans in March, up slightly from a revised 37.5% in February and up from 10.1% in March last year.
Regionwide, foreclosure resales accounted for 55.4 percent of March's resales activity, down from a revised 56.7 percent in February and up from 35.7 percent in March 2008.
The median price paid for a So. California home was $250,000 last month, the same as in January and February. That was down 35.1 percent from $385,000 for March a year ago. The median peaked at $505,000 in mid 2007.
Because of the lopsided sales mix profile, the decline in the median overstates the decline in home values. It appears that homes in older, more costly, neighborhoods have come down in value by about half as much as homes in newer, more affordable, neighborhoods.
The typical monthly mortgage payment that So. California buyers committed themselves to paying was $1,074 last month, down from $1,090 for February, and down from a revised $1,841 for March a year ago. Adjusted for inflation, current payments were 50.8 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They were 59.7 percent below the current cycle's peak in July 2007. Source: DQNews.com:
|
|
Sales Volume |
Median Price |
||||
|
All homes |
Mar-08 |
Mar-09 |
%Chng |
Mar-08 |
Mar-09 |
%Chng |
|
Los Angeles |
4,263 |
5,971 |
40.1% |
$440,000 |
$300,000 |
-31.80% |
|
Orange |
1,663 |
2,413 |
45.1% |
$506,000 |
$390,000 |
-22.90% |
|
Riverside |
2,691 |
4,409 |
63.8% |
$306,250 |
$187,000 |
-38.90% |
|
San Bernardino |
1,534 |
2,897 |
88.9% |
$265,000 |
$150,000 |
-43.40% |
|
San Diego |
2,108 |
3,020 |
43.3% |
$395,000 |
$285,000 |
-27.80% |
|
Ventura |
549 |
776 |
41.3% |
$430,000 |
$326,000 |
-24.20% |
|
SoCal |
12,808 |
19,486 |
52.1% |
$385,000 |
$250,000 |
-35.10% |
Foreclosure activity is up (Foreclosures Soar in March, Up 44 Percent Over February's High), while financing with adjustable-rate mortgages is at an all-time low, as is financing with multiple mortgages. Down payment sizes and flipping rates are stable, and non-owner occupied buying activity is above-average in some markets.
This is a great time to be a home buyer, especially a foreclosure home buyer. In many of the hardest hit areas, rents are actually higher than a standard mortgage. And with prices down over 50% from the peak and mortgage rates at levels not seen since the 1970's, there has never been a more affordable time to buy real estate. I don't expect rates to stay this low for long as inflation pressures are just around the corner. Make sure you "buy right" and lock in your profits when you buy, so you can bank your profits when you sell.
And I will show you how next Tuesday in my Mastering Mini-Lab Live Webinar and Conference Call on how to "Do the Right Math". You must register in advance. More here. Or call 800-310-7730 x2 and Jim or Andy will help you out. Talk to you then!
|
|
|
|
|
 |
