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Search the San Diego MLS(includes all areas in San Diego County)
September 01, 2009
Southern California Experiencing Rise in Home Sales, Drop in Prices
Home prices in Southern California were down 24% in July compared with July 2008 as
foreclosure sales flooded the market. According to MDA DataQuick, the median price
for a home was $270,000, whereas last year's median sales price in July was
$350,000. The number of homes sold increased nearly 20 % to more than 20 thousand
homes sold in the region which includes the counties of San Diego, Los Angeles,
Orange, Riverside, San Bernardino and Ventura.
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Of all sales in the month, about 44% were foreclosures, down from June's 46% and
the record 58% in February. In proportion to total home sales, foreclosures
represented the lowest percentage since last June. $500k+ homes accounted for 21% up
from 15% in March.
July's median sales price represented a slight gain from June and the third
monthly increase in a row, mainly because of the higher proportion of homes with
financing of over $420k. About 14% of sales fell in this category, the highest
percentage in 11 months.
Experts predict a drop in prices in coastal areas with higher property values job
cuts mount and recently listed properties drop in asking prices. Investors and
absent buyers, defined as homebuyers whose property tax bills are mailed to a
different address, accounted for 20% of all sales in July up from 17% last July and
significantly higher than the 16% monthly average since 2000.
Homes purchased with Federal Housing Administration (FHA) backed loans made up 38%
of all sales, well higher than the 21% that FHA backed home sales accounted for out
of the total sales in July 2008.
Prices fell in each of the six counties of Southern California, with the highest
drop occurring in San Bernardino, where the median sales price fell 40% to $140k.
Next was Riverside, where the median fell 30% to $186k; then Los Angeles, with a 21%
drop to $320k; San Diego, 13% to $321k; Ventura, 12% to $376k; and Orange, 10% to
$421k.
Five of the six Southern California counties experienced a rise in home sales, with
San Bernardino's 42% gain leading the way. Sales were 24% higher in Los Angeles,
15% in Riverside, 13% in Orange and 12% in San Diego. Sales dropped by 3% in Ventura
County.
The $270k median sales price in July was down nearly 48% from the $506k median
reached during the real estate boom's peak in the spring and summer of 2007.
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