California Real Estate Sales Update for Jan. 2009
SAN DIEGO -- Home sales in San Diego County jumped by 34.7% in January, compared to the same month a year ago, while prices dropped 34.7%, a real estate information service reported yesterday. A total of 2,459 homes sold in January, up from 1,826 for January 2008, while the median price of a home in San Diego County last month was $280,000, down from $429,000 in the same month a year ago, according to La Jolla-based MDA DataQuick (see top chart above).
A total of 15,227 new and resale homes sold in the six-county Southern California region (Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties) last month. That was up 52.5% from 9,983 in January 2008. The median price of a Southern California home was $250,000 in January. The median price was down 39.8% from $415,000 in January 2008 (see bottom chart above).
3 Comments:
median price of a home in San Diego County last month was $280,000,
The over 500K home market accounts for close to 50% of the available homes for sale but provide something like 18% of current sales volume.
REO's are a investor niche, anyone who has gone out and looked at these properties realizes quickly that most will require significant rehab now and in the future but investors tend to do quick clean ups and put them up as rentals waiting for a market rebound. Most of these homes are older and have been poorly maintained so someone wanting to buy and live in the homes will need significant cash to fund these costs but most non-investor REO sales are FHA low down first time buyer programs, meaning many will not be able to afford the necessary work in the future.
Home rental ad's have skyrocked as the investors seek cash flow. Sooner or later this phase will crash and investors based on when they entered the market will put more and more REO's back on the market.
Basically the REO sales is another phase of the RE speculative excess from 03 to 07 with buyers being driven by future property appreciation and not fully understanding the market realities
but the gov't is the new subprime lender providing the liquidity.
I don't understand. Government officials and advocacy groups in San Diego and southern California have been pushing "affordable housing" for years. Now that the housing certainly appears to be more affordable, everyone is unhappy.
Taxpayer subsidized Democrat party brown shirts are attempting to undermine the real estate recovery.
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