Socal housing market - still stuck in neutral

The lackluster jobs recovery is killing local real estate. May home sales in L.A. County tumbled 18.3 percent from May 2010, when the federal tax credit program was drawing in homebuyers. The median price fell 7.2 percent from a year earlier, to $320,000. These new numbers from Dataquick are especially discouraging because this is one of the busiest times of the year for buying a house. If it's not happening now, it won't be happening next November. From press release:

"A year ago we were talking about sales reaching a four-year high as buyers rushed to take advantage of expiring federal homebuyer tax credits. Now sales are stuck at a three-year low. The government stimulus is long gone and some of the fundamental drivers of housing demand have yet to strengthen enough to lift sales to even average levels. Some of the key culprits are weak job growth, tight credit and a hesitancy among potential buyers and sellers, who question whether this is the best time to make their move," said John Walsh, DataQuick president. "So here we sit in the market doldrums," he continued. "Two of the more likely sources of fresh wind in the market's sails would be a pickup in hiring or further home price reductions."

One out of three homes resold was a foreclosure, while about one in five was a "short sale." That's certainly an improvement from February 2009 when foreclosure resales peaked at 56.7 percent, but it's still high. Tight credit conditions continue to hold back deals that rely on adjustable-rate and "jumbo" home loans.

MAY HOME SALES (% change from May 2010)
Los Angeles 5,983 -18.3%
Orange 2,664 -18.2%
Riverside 3,644 -12.5%
San Bernardino 2,323 -18.1%
Ventura 693 -15.0%

MAY MEDIAN PRICE (% change from May 2010)
Los Angeles $320,000 -7.2%
Orange $425,000 -5.6%
Riverside $197,000 -6.2%
San Bernardino $150,000 -6.3%
Ventura $360,500 -5.1%

Source: DataQuick, DQNews.com