Wikinvest Wire

SoCal real estate - happy days are here again!

Wednesday, September 16, 2009

A quick update of the charts for Southern California real estate sales are in order after yesterday's DataQuick report on August activity.
IMAGE Judging from the trend in year-over-year prices, it looks like happy days are here again, though none of the six counties have posted a positive result for two years.

That may change in the months ahead as Orange County is only a few percent shy of break even, no doubt aided by an increase in sales at the high end that boosts median prices, all else being equal.

The median price paid for all of Southern California rose 2.6 percent, from $268,000 in July to $275,000 last month, however this is down 16.7 percent from a year ago.
IMAGE Investors are said to be snapping up homes at a blistering pace, accounting for some 20 percent of all sales, up from 18 percent last month, and foreclosure sales are declining, down from a peak of almost 60 percent of all sales in February to just 39 percent in August.

There is a good deal of caution in both the DataQuick report and in other accounts of this latest California real estate sales data.

The surge in buyers who are looking to take advantage of the $8,000 home buyers tax credit which expires soon, the seasonally lower mix of foreclosures sales, the inventory of foreclosed homes now in the pipeline but still held off the market, and the upward pressure on median prices due to a sales mix that now includes more higher priced homes may all be contributing to a picture of rising prices that is not consistent with reality.

Maybe it's just me, but this is starting to feel like 2005-2006 all over again.

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4 comments:

Jones said...

I'm tellin' ya, nothing went down at all here on the west side of Los Angeles. We've had absolutely no contraction. Everyone is paying sky high bills and if you didn't buy a decade ago, you can't buy now. Real estate isn't moving, but prices haven't dropped here at all. This is not good news.

A condo is for sale in my friend's building. The fella wants $1.2M. He's had offers for $600K. He's not selling. Nothing is moving.

Anonymous said...

In the San Francisco area, anything under $500,000. still elicits a bidding war.
A home near us, beatuiful views of San Francisco, and the Bay, was listed at $1.3MM, dropped to $1.2,
and sold at $1.1MM, so homes are moving, if the seller shows some flexibility.

Lisa said...

"Dead cat bounce" in real estate, as in the stock market, was predictable. False hope here. IMO, prices will resume their downward trajectory starting in 5,4,3,2...... :) Homes here in NY listed last year for $9.5M, now $4M. Ouch.

Laguna Beach Realty said...

Real Estate market is surely bouncing back although exceptions are still there and it will take some time before things become stable again.

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