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A total of 6,070 homes were sold in the county in September, according to Dataquick, a drop of 1.8 percent from the previous month and 15 percent from September 2009 (when the homeowners tax credit was still in effect). The median price was $340,000, an increase of $1,000 from August and $10,000 from a year earlier. Foreclosures account for about a third of all Socal sales. From press release:
"Today's market can be characterized as much by activity that's not happening, as by the activity that is happening. We're seeing distress-selling, bargain-hunting and entry-level buying, while the rest of the market is still largely on hold," said John Walsh, MDA DataQuick president. "As many wait for this market uncertainty and turbulence to pass, demand is being generated and is accumulating. At some point, the mortgage spigot will be re-opened and there will be a surge of buying activity, probably financed with low interest rates," he said.
SEPTEMBER HOME SALES (% change from September 2009)
Los Angeles 6,070 -15.0%
Orange 2,524 -10.7%
Riverside 3,292 -23.7%
San Bernardino 2,454 -18.8%
Ventura 682 -13.0%
SEPTEMBER MEDIAN PRICE (% change from September 2009)
Los Angeles $340,000 3.0%
Orange $445,000 3.7%
Riverside $200,000 8.1%
San Bernardino $160,000 6.7%
Ventura $370,000 -0.5%
Source: MDA DataQuick
A not-so-wonderful assessment of the national housing situation was made this morning by William Dudley, president and CEO of the Federal Reserve Bank of NY:
We estimate that there are roughly 3 million vacant housing units more than usual. And more vacancies are added daily as the foreclosure process moves homes from families to mortgage lenders. This stock of vacant homes will shrink when fewer are foreclosed upon and more of these homes are sold or rented out. On the sales side, even though low mortgage interest rates and falling home prices have together boosted housing affordability to its highest level in 40 years, the current pace of sales is quite sluggish. Impediments to home sales include tight lending standards, a weak job market and continued uncertainty regarding the future path of home prices. The large decline in home prices that occurred between 2006 and 2008 is also important. This decline reduced the amount of equity that owners have in their homes, making it difficult for people to come up with the funds needed to "trade-up" and move into better homes.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.