Southern California Real Estate Market Rebounds: Unit Sales and Median Prices Both Increase in May
DQNews.com -- Southern California home sales rose for the 11th consecutive month in May as sales of $500,000-plus homes started to come back. The median price paid increased slightly from the prior month for the first time since July 2007, the result of a shift in market activity where sales of deeply discounted foreclosures waned and mid- to high-end purchases rose, a real estate information service reported.
A total of 20,775 new and resale houses and condos closed escrow in San Diego, Orange, Los Angeles, Ventura, Riverside and San Bernardino counties last month. That was up 1.3% from 20,514 in April and up 22.8% from 16,917 a year ago. Sales have now increased year-over-year for 11 consecutive months. May’s sales were the highest for that month since May 2006, when 30,303 homes sold, but were 21.2% below the average May sales total since 1988, when DataQuick’s statistics begin.
The median price paid for all new and resale houses and condos sold in the six-county Southland last month was $249,000, up 0.8% from $247,000 in April but down 32.7% from $370,000 a year ago. The median price hadn’t risen from one month to the next since July 2007, when it increased 0.6% from $502,000 to $505,000.
"We appear to be in the early stages of the market gradually tilting back toward a more normal balance of sales across the home price spectrum. As more sellers get realistic, more buyers get off the fence and more lenders offer reasonable terms for high-end purchase financing, we’ll see a more normal share of sales in the more established, higher-cost areas that have been nearly comatose,” said John Walsh, MDA DataQuick president.
MP: Although the increases were small, the fact that both unit home sales and median home prices increased in May suggests that the Southern California real estate market has reached a bottom and is on the road to recovery.
6 Comments:
I just forecast a general increase in home prices, and Los Angeles area as well. http://econmkts.com/pangea_radar.php
How can the market rebound when foreclosures are at an all time high and heading higher? Read
http://www.doctorhousingbubble.com/foreclosure-reality-check-16-million-foreclosure-filings-with-5-months-of-data-california-notice-of-defaults-and-foreclosures-skyrocketing/
Good luck !
“Let’s not forget we’re into the traditional home buying season right now,” he continued, “meaning more people are purchasing for all of the normal reasons, such as a new job or to get settled before school starts. Many are concerned with finding the right home in the right area, not just the most deeply discounted home.”
"Foreclosure activity remains near record levels, while 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 has risen and is above-average in some markets."
Sigh.
The posting by Professor Mark regarding what appears to be 'better news' in the southern California real estate market made me wonder...
Reshma Kapadia writting in Smart Money has the following: Red Herrings: False Signs of an Economic Rebound
What Housing Glut?
Housing inventory measures the supply of unsold homes on the market. Right now it’s high—a 10-month supply of homes, up from the average of about five—and conventional wisdom says the housing market won’t recover until it declines. This time around, however, waiting for “normal” could cost you. In fact, an improving economy might mean more homes on the market, not fewer. Some banks are sitting on foreclosed properties, waiting for a friendlier economic climate before putting them on the market, and many homeowners are essentially doing the same thing. Stephen Kim, senior analyst at Alpine Global Real Estate fund, thinks home-building stocks “will rally while inventory levels are still high.”
Is Mr. Kapedia missing the mark (pardon the pun)?
"Is Mr. Kapedia missing the mark (pardon the pun)?"
Prof Mark has been predicting the bottom of the housing market for seven months. One day (not soon) he will be right on the mark ! !
I don't even get a hat tip for supplying the link to this in the previous post. And then dancing around all the bad news.
Sigh.
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