For the first time in ten months, price declines came to a halt in Southern California, according to new information released by DataQuick earlier this week.
A total of 15,231 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was essentially unchanged from 15,227 for January, and up 41.3 percent from 10,777 for February 2008.
A total of 15,231 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was essentially unchanged from 15,227 for January, and up 41.3 percent from 10,777 for February 2008.
Throughout the region, foreclosures now account for 56% of sales activity, up from 36% one year ago.
The median home price stands at $250,000, down 41 percent from one year ago and over 50% below the "high water mark" of $505,000, which was set in mid-2007.
So what does it mean?
Ultimately, to turn our market around, it's going to take more buyers than sellers, more job gains than job losses and continued low interest rates to fuel a solid recovery. We have the buyers - with interest rates in the 5's (4's???) and the $8,000 first-time buyer tax credit spurring entry level sales, there's no shortage of buyer activity below $300,000.
The higher price points are still a concern, though, because equity losses are still mounting and an uncertain economic climate is causing many potential move-up buyers to take a long, slow assessment of whether or not moving up is the right thing to do.
But the bottom line is that we seem to have found our floor.
The tricky thing about trying to time the market is that you only know when you've touched bottom after you begin heading back up. That may be what's happening now.
With low rates, discounted prices and a strong, temporary tax incentive for first-time buyers, the rest of this year figures to see higher volume and more competition for entry level homes.
Freeing up additional credit, especially in the arena of jumbo loans, will continue to be hugely important to fueling a larger overall recovery.
We'll continue to work with our local, state and national government officials to push for more support for housing in California.
