L.A. home prices fall

More sales in January involved distressed properties and lower-cost inland homes rather than the pricier fare closer to the water. As a result, the median price in L.A. County was $325,000, a $14,000 drop from the month before when the higher-end market was picking up. But it also was $25,000 higher than a year earlier. January home sales were down sharply from December (very typical this time of year), but up sharply from a year earlier. Confused? Don't expect much consistency in these monthly reports - the market has clearly improved from early 2009, but sales and prices remain spotty and unpredictable. As always, much depends on where you are. From the Dataquick release:

"The January stats underscore just how atypical this market remains. A huge chunk of what's selling is still distressed. Investors and first-time buyers continue to dominate many areas, while the move-up market has yet to kick in. For many, the financing to buy high-end homes remains difficult, if not impossible, to obtain," said John Walsh, MDA DataQuick president. "High-end sales aren't nearly as sluggish as a year ago, but they lost traction over the holidays, which can be seen in the January closing data," he said. "Whether significant new patterns are emerging in the market is unclear. We try not to over-analyze one month's data, and historically January and February haven't been the best indicators for the year ahead."

No sign of any improvement in the jumbo mortgage market, which also explains the slower sales for higher-cost coastal areas. Mortgages above $417,000 accounted for 14.2 percent of all home purchase loans; before the credit crunch, they made up nearly 40 percent of purchase loans.

JANUARY HOME SALES (% change from January 2009)
--Los Angeles 5,228 15.4%
--Orange 1,867 3.4%
--Riverside 3,162 -4.8%
--San Bernardino 2,252 -11.1%
--Ventura 530 -8.3%

JANUARY HOME PRICES (% change from January 2009)
--Los Angeles $325,000 8.3%
--Orange $425,000 14.9%
--Riverside $195,000 0.0%
--San Bernardino $150,000 -7.4%
--Ventura $360,000 7.5%

Source: MDA DataQuick, DQNews.com