Wikinvest Wire

SoCal real estate in April: rising sales, flat prices

Monday, May 19, 2008

A short time ago, DataQuick reported on Southern California real estate sales for the month of April. Now two months into the spring selling season, sales have rebounded, but prices remain under pressure, holding about even from last month.
It's all about foreclosures now and how aggressively banks price their inventory. Almost 38 percent of the overall sales were the result of a foreclosure, up slightly from last month and up from only about 5 percent a year ago.

More than half of the homes sold in Riverside County were foreclosures, explaining much of what you see below as prices dipped 28 percent on a year-over-year basis for both Riverside and San Bernardino.

Price declines in our old stomping ground of Ventura County have pulled back a bit after having taking the lead down a few months ago.Marshall "almost all if not all of those gains are here to stay" Prentice, President of DataQuick, had these comments on the April data:

Quite a few more buyers stepped off the sidelines last month to snap up homes at substantial discounts relative to the market's short-lived peak. It's no surprise, given the magnitude of the price declines in inland areas and the fact sales have been so amazingly low for so long. We continue to look for evidence of a sales bounce in the mid-priced and higher-end markets along the coast. If the higher conforming loan limits are making a difference in those areas it's certainly not a large one, at least not as of the end of April.
Sales levels are quite low compared to the boom years. The March-April rebound doesn't even rise to the levels of the January-February "doldrums" going back at least through 2003.
The sales and price data for the next few months should be quite interesting - how aggressive banks are in pricing their properties for sale and how willing buyers are to step in and take a chance.

In our new Northern California neighborhood, foreclosures that are priced aggressively sell very quickly.

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5 comments:

Anonymous said...

I just knew the Inland Empire would fall face first into the living room floor after showing up late to the party, already stinkin' drunk.....

Dan said...

I've never thought the numbers from dataquick were that accurate. From what I see, $430K is a little low for the median price of even a condominium in Los Angeles. What is the composite for these numbers? I'm not sure if you've stated on here before, but I've been hard-pressed to find anything near those median numbers.

Tim said...

There's a lot of low-priced housing out there - you're probably just used to looking in the upper price range. For an idea of how accurate the median is, just look at asking prices at Realtor.com. I just did it across all of Ventura county and on page 210 (of the 420 pages of listings) the asking prices were $485K versus about $450K in the DataQuick numbers. That sounds reasonably close given the discounts on the asking prices these days.

Dan said...

Okay - LA is big - must be county-wide median. And yes, I typically have only been looking near where I do most of my business - I won't commute across town as going 10 miles in LA can take up to 2 hours, kill your car and unnecessarily waste gas while graciously shortening your life.

Nozferatu said...

Wow...it seems there are still alot of idiots out there who think just because the house is in a foreclosure it must be a good deal...and they're snapping them up? And how is this different from being in a rat race with the idiots from the a few years ago?

Good luck...it's time to leave California.

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