Monday, October 26, 2009

CA Real Estate Recovery: Home Sales Increase for 15th Straight Month, Median Prices for 7th Month

LOS ANGELES (Oct. 26)Home sales increased 2.1% in September in California compared with the same period a year ago, while the median price of an existing home declined 7.3%, the CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.) reported today.

Closed escrow sales of existing, single-family detached homes in California totaled 530,520 in September at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR associations statewide. Statewide home resale activity increased 2.1% from the revised 519,530 sales pace recorded in September 2008 (see chart above). Sales in September 2009 increased 0.6% compared with the previous month.

The median price of an existing, single-family detached home in California during September 2009 was $296,090, a 7.3% decrease from the revised $319,310 median for September 2008, C.A.R. reported. The September 2009 median price rose 1.1 percent compared with August’s $292,960 median price.

“A new milestone was reached in September, when five C.A.R. regions reported positive year-to-year increases in the median price, the first such increase since January 2008,” said C.A.R. Vice President and Chief Economist Leslie-Appleton-Young. “September also marked the seventh consecutive month of month-to-month increases in the statewide median price and the first single-digit decline in the year-to-year median price since October 2007, after 22 consecutive months of double-digit decreases.

C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in September 2009 was 4.2 months, compared with 6.5 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

MP: Now that year-over-year unit sales have increased for 15 consecutive months, median prices have increased for 7 straight months, and unsold inventory has dropped by more than two months over the last year, can we now declare that the California real estate market is in a full state of recovery? And if this isn't a full recovery, how would it be any different than the current conditions?

6 Comments:

At 10/26/2009 6:50 PM, Anonymous Anonymous said...

If i stare real real hard at this Dataquick 22 year chart, I would say that September California unit sales are tied for the second worst since 1997.

Now if you want to adjust unit sales per household, you cannot declare that the California real estate market is in a full state of recovery.

 
At 10/26/2009 10:23 PM, Blogger BMWright said...

I agree all the facts you've shown on housing sales makes 2009 a recover year for residential housing sales. Lets see what happens when government stops giving $8,000 away.

Purhaps the reason for so little belief about this positive and the stock market is the JOB LOSSES and UNEMPLOYMENT. We know its a lagging indicator but peoples belief about the economy will not improve until unemployment declines from the highest levels in at least 25 years.

 
At 10/26/2009 11:12 PM, Blogger OA said...

Here's what I've noticed while looking for a place in the Los Angeles area. Standard sales go quickly, many above ask. Short sales, which are usually well below standard sales, are all very good deals if you can wait 4 to 6 months for them to close. Any short sales that re-list due to failed escrows seem to sell very fast since there's already an approval at a certain price.

Frankly, if the banks could move faster, they'd be able to ask for more money. But in many cases they're not the ultimate holder of the note so they can't move fast even if they wanted to.

Condos are hit and miss. Many complexes have very high HOA fees ($300-$500) due to delinquent fees from many units. Even with low prices, it's a tough decision to buy in without knowing if your HOA fees are going to keep having to cover vacant units. Many of the best looking deals turn ugly when you see the $489 HOA on a sub-$300,000 unit.

 
At 10/27/2009 9:17 AM, Blogger juandos said...

Pardon me but this is a bit off topic...

Maybe Professor Mark might be interested in what else can be done with Detroit's empty houses...

Ice House Detroit

Holm, 38, plans to photograph the transformation of the house, which will be sprayed with water and gradually covered in ice...

 
At 10/27/2009 8:20 PM, Blogger OA said...

That's an interesting idea in Detroit. I'm not sure how comfortable I'd be with eating produce depending on the history of a given lot. But if inflation really does take off, being partially self sufficient is going to be worth a lot.

 
At 10/28/2009 4:00 PM, Blogger juandos said...

"But if inflation really does take off, being partially self sufficient is going to be worth a lot"...

Amen OA...

 

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