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L.A. County home sales were up 11.9 percent from a year earlier and 1.6 percent from May, according to Dataquick. Throughout Southern California, June sales were up 7.5 percent from 2011. L.A. prices also gained ground, with a median price of $325,000, up 2.2 percent from a year earlier and 3.2 percent from May. The improving picture is the result of fewer sales of foreclosed properties in the inland areas and increased sales of mid- to high-end homes closer to the coast. (Note the sales decline in Riverside and San Bernardino counties.) In fact, median prices are at some of their highest levels in two years. Significantly, the number of homes sold in Socal for between $300,000 and $800,000 increased 12.8 percent year over year. Still, the housing market does not operate in a vacuum, and unless consumer confidence starts to pick up, sales and prices run the risk of stalling out over the next few months. From press release:
Higher demand and a smaller inventory of homes for sale have put pressure on prices in some areas, but two other trends are at work: First, there's been a significant drop in the share of transactions that are foreclosed properties, which tend to sell at a discount and be concentrated in lower-cost areas. Second, a greater portion of sales are occurring in the higher-cost coastal markets. Last month, for example, sales in San Diego, Orange, Los Angeles and Ventura counties represented 71 percent of all Southland activity, up from 68 percent in June 2011. "The June numbers look pretty good at first glance, but they're more mixed when you scratch beneath the surface. Yes, the median sale price rose again. But it's clear this has a lot to do with changes in the types of homes selling, rather than across-the-board price appreciation, [said John Walsh, DataQuick president].
Walsh describes the current activity as an "early recovery phase" and cautions that what happens next will depend on the strength of the economy.
JUNE HOME SALES (% change from June 2011)
Los Angeles 7,619 +11.9%
Orange 3,351 +13.7%
Riverside 3,832 -3.2%
San Bernardino 2,565 -1.3%
Ventura 952 +23%
JUNE MEDIAN PRICE (% change from June 2011)
Los Angeles $325,000 +2.2%
Orange $453,000 +1.8%
Riverside $206,500 +3.3%
San Bernardino $158,000 +6.8%
Ventura $365,500 +3.0%
Source: DataQuick, DQNews.com
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.